AIG is initiated a Buy at BMO Capital with $50 price target.


AIG is initiated a Buy at BMO Capital with $50 price target.
From other sites
Comments (4)
  • ahouseoforange
    , contributor
    Comments (592) | Send Message
     
    Is that their 12 month target? $50 would be about .75 stock to book value ratio no?
    18 Apr 2013, 08:29 AM Reply Like
  • raclay
    , contributor
    Comments (10) | Send Message
     
    That kind of depends on their earnings for the rest of the year and whether or not they use their cash for a buyback rather than dividends.

     

    What I'd like to know is what effect would the buyback of warrants have on the level of book value? Would it be more efficient than buying the common?
    18 Apr 2013, 08:52 AM Reply Like
  • marvin schwartz
    , contributor
    Comments (238) | Send Message
     
    I'm glad BMO initiated a buy rating on AIG but I'm more impressed by the fact the top hedge funds have made it their number one investment.As I've written in the past , they have the best contacts, best analyst, and best traders.
    18 Apr 2013, 04:59 PM Reply Like
  • ahouseoforange
    , contributor
    Comments (592) | Send Message
     
    I don't know but I would think buying the warrants has no impact on current book value as the warrants are not used to make a book value calculation. Now if you look out to 2021 and if any warrants were to be exchanged for shares at that time yes I guess at that point there would be a reduction in book value due to more shares outstanding resulting from the warrant conversion to common shares. In the intervening nearly 8 years however there should be no impact.
    19 Apr 2013, 12:38 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs