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One insurance property and casualty player whose insiders are snapping up a decent amount of stock in is
American International Group(AIG - Get Report), an international insurance organization, serving customers in more than 130 countries. Insiders are buying into strength here since shares of AIG are up over 28% so far in 2012.
American International Group has a market cap of $56 billion and an enterprise value of $82 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 3.14 and with a forward price-to-earnings of 10.67. Its estimated growth rate for this year is 156.9%, and for next year it's pegged at 6.1%. This is far from a cash-rich company, since the total cash position on its balance sheet is $48.54 billion and its total debt is $75.85 billion. When you back out its cash, AIG has a whopping $27.21 billion in debt on its balance sheet.
A director just
bought 15,000 shares, or $421,000 worth of stock, at $28.06 to $28.08 per share.
From a technical perspective, AIG is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been in a monster uptrend for the past three months, rising from around $20 to its current price of close to $30 a share. This monster move has pushed shares of AIG into overbought territory since its current relative strength index (RSI) reading is now 78.79.
If you're bullish AIG, I would look for short-term long biased trades once it breaks out above some overhead resistance at $30.09 to $30.34 with high-volume. Look for volume on that move that registers near or well above its three-month average volume of 5,295,120 shares. For a longer-term entry point, I would look for long-biased trades off a pullback near some previous support levels at $28 to $26 a share.
AIG shows up in the
portfolio of Bruce Berkowitz's Fairholme Capital Management, with a 92 million-share position as of the most recently reported quarter.