NEW YORK (TheStreet) -- TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, called American International Group's (AIG) CEO Robert Benmosche "one of my Bankable 21" chief executives
Why? Cramer said the guy took what everyone thought was a bankrupt company, a "ward of the state," and "turned it around into a great property/casualty [insurance] company."
Property/casualty stocks are "out of fashion," said Cramer, after Travelers Companies (TRV) said there is now price competition between these insurance companies. The prospect of lower premiums has weighed upon shares of a lot of insurers, including AIG, in the past month.
However, according to Cramer, this presents a good buying opportunity into AIG for investors.
He said that thanks to Benmoshe, AIG has favorable capital returns in the form of a dividend payout and share buyback plan.
The CEO is also responsible for making AIG, which last year paid back the final installment of its $182 billion federal government bailout, "into one of the most undervalued companies that are still left in the stock market," Cramer said. The stock is undervalued in the sense that its book value is "north of $60," while the stock currently trades at $49.
At the time of publication, Cramer's Action Alerts PLUS held no position in any of the stocks mentioned.
-- Written by Bret Kenwell in Petoskey, Mich.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV