Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Treasury Exits AIG, but the Smell Lingers

Stocks are up nicely this morning, with the Dow Jones Industrial Average (DJINDICES: ^DJI  ) and the broader S&P 500 (SNPINDEX: ^GSPC  ) gaining 0.7% and 0.8%, respectively, as of 10:15 a.m. EST.

Fiscal-cliff watch
After several weeks of depressing headlines, the tide may have turned with regard to negotiations on the fiscal cliff. President Obama met with Republican House Speaker John Boehner over the weekend. The best sign that the two factions are now serious about putting aside their differences and making some progress? Both sides agreed to keep the content of their discussions private. It turns out that posturing for the benefit of the media and publicly deriding your opponents' position doesn't foster the most cooperative negotiating environment. To keep up on this topic and, specifically, its impact on investors, be sure to check out our latest fiscal-cliff coverage.

Value play
Yesterday, the U.S. Treasury launched a public offering for its 15.8% stake in American International Group (NYSE: AIG  ) . More than four years into the government's $182 billion rescue, I believe AIG remains an overlooked value play. The shares trade at less than half their tangible book value, while management continues to unlock the value of the company's assets. Just this past Sunday, the company finalized the sale of 90% of a noncore aircraft-leasing business for $5 billion.

As Motley Fool financials analyst Matt Koppenheffer wrote recently: "The heaping of negative publicity the company's taken over multiple years has cast a pall over the stock, and it currently trades at a very low valuation -- one that probably discounts in many downside scenarios and provides serious returns potential in upside scenarios." To read Matt's comprehensive assessment of the upside -- and risks -- of AIG shares, click here to request his premium report, which includes a full year of ongoing updates.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2148280, ~/Articles/ArticleHandler.aspx, 10/28/2016 12:53:04 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 3 hours ago Sponsored by:
DOW 18,169.68 -29.65 -0.16%
S&P 500 2,133.04 -6.39 -0.30%
NASD 5,215.97 -34.29 -0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/27/2016 4:00 PM
AIG $61.42 Up +0.31 +0.51%
American Internati… CAPS Rating: ****