Posts for Ticker ‘MET’

How Much is Benmosche Really Worth to AIG? (AIG, MET)

AIG LogoAmerican International Group, Inc. (NYSE: AIG) is under pressure today after its new CEO Robert Benmosche, who has not even had a full three months yet on the job, has effectively threatened to walk out as CEO of AIG. The reasoning is over the intense restrictions of being under the government, particularly as it pertains to compensation limits.  What is interesting is that this may be a strong CEO throwing the gauntlet at the government.  But we also want to explore what Benmosche is actually worth in real dollar terms to AIG today.  Chances are it is far more than just this 4% we have seen the stock drop today.
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Posted on: November 11, 2009 – 1:00 pm in Compensation, Editor's Picks, Financial Stocks, Insider Activity, Management Change, Regulation, Rumors, Shareholder Issues, Turnarounds, ,

Trader Crack: AIG Goes To $100 (AIG, C, BAC, HIG, MET, YHOO)

Bull and Bear ImageThe DJIA has risen for eight straight days and the verdict is still out as to how today’s close will go.  With major indexes trading over 50% above their March lows and with all the troubled and speculative financial stocks trading like the new ghetto replacement for crack, you know you are in the midst of a big bull market or a major bear market rally.  And this new call on American International Group, Inc. (NYSE: AIG) either proves that we are all going nuts in the euphoria or that this market cannot be scared and cannot be reasoned with.  AIG has doubled since August 19 and is up roughly 400% from lows.  And now here is the call we are starting to hear more and more as at least a possibility…. AIG at $100.

For starters, we are not just skeptical.  Call us, or call me, Thomas.  But after running the math, this is at least not out of the realm of possibilities.  This becomes a scary notion if you start interpolating the gains off of lows seen at some of the other troubled financial giants that took TARP money and had to get bailed out by Uncle Sam.

Citigroup, Inc. (NYSE: C) is actually up more than 400% from its lows; and it is still down more than 75% from its 52-week highs and down over 90% from its $50+ highs in 2007.  Bank of America Corporation (NYSE: BAC) is still down about 55% from its 52-week highs today and is down 66% from its highs in 2006. Hartford Financial Services Group Inc. (NYSE: HIG) also took TARP money and it is an insurer.  Hartford shares are actually up sixfold from their lows; yet the shares are still down about 66% from the 52-week high and down over 75% from the 2007 highs.  While AIG is in hock with Uncle Sam, and while it is perhaps the most hated company by most of Main Street of all surviving financial giants, imagine if you started just using the stock performance of other troubled financial giants to make price targets at AIG.
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Posted on: August 28, 2009 – 1:50 pm in Analyst Calls, Banking, Financial Stocks, Index, Turnarounds, , , , , ,

Larry Ellison: The Return Of The Dollar A Year Man

bucksSteve Jobs worked at Apple (AAPL) for $1 a year in 2000, just before the launch of the iPod which completely changed the company’s fortunes and made him astonishingly wealthy. Lee Iaccoca worked for $1 in 1978 when he took charge of crippled Chrysler. Read More »

Posted on: August 24, 2009 – 5:01 am in Compensation, , , , , ,

New CEO May Keep AIG Together… Or Not Dump Units on the Cheap (AIG, MET)

aig-logoRobert Benmosche has already come under a bit of fire for his pay package as the new head of troubled insurance giant American International Group, Inc. (NYSE: AIG).  But critics demanding immediate government repayment for those endless billions of TARP and other Uncle Sam-backed liquidity dollars may have some new issues to quarrel about.  It looks like this new CEO is following at least some of the same notions that founder Hank Greenberg has been adamant about: Don’t sell everything off immediately on the cheap.  The newest reports show that Benmosche is scrapping the sale of its broker-dealer unit called AIG Advisor Group.
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Posted on: August 19, 2009 – 7:05 am in Financial Stocks, Management Change, Mergers and Buy Outs, Politics, ,

Head Of AIG (AIG) To Be Overpaid By $6,999,999

bearAIG has already taken in $180 billion of taxpayer money and there is absolutely no reason to believe that most of it will be returned. The insurance company is still losing money and its efforts to sell off units to raise capital have been pathetic.

Ed Liddy, former CEO of Allstate (ALL), was the firm’s CEO for the last year. He was brought in by the government to help work out the mess. He was repaid by regular beating from Congress over AIG management compensation set before he arrived. He worked for $1 a year. Read More »

Posted on: August 18, 2009 – 6:06 am in Compensation, , ,

Media Digest 8/4/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   A plan for universal healthcare in China could cut the savings rate.

Reuters:   Bank regulators are opposing the Obama shake-up of the system.

Reuters:   Bank of America (BAC) settled SEC charges over Merrill bonuses.

Reuters:   July retail sales lacked a back-to-school jump. Read More »

Posted on: August 4, 2009 – 3:54 am in Press Digest, , , , , , , , , , , , ,

Meet AIG’s New CEO… Maybe (AIG, MET)

Troubled insurance and financial giant American International Group Inc. (NYSE: AIG) may have found a new CEO to run the company.  Or dare we say… a new victim! Based upon what the company has told us today, we would consider this is a rumor until an announcement is formally made by the company.  The WSJ, Bloomberg, and Reuters have all reported that Robert Benmosche has been selected to take the CEO role now that Ed Liddy has stepped down.  If Benmosche’s name sounds familiar, that is because he was Chairman and CEO of MetLife Inc. (NYSE: MET).  We have heard several names thrown around in recent weeks over who might take this job, and there may be a winner.

Our own call into AIG has so far been unable to confirm or refute if Benmosche is accepting the position.  The statement we just received from a spokesperson was “We are not commenting on this issue.”
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Posted on: August 3, 2009 – 11:58 am in Financial Stocks, Management Change, Rumors, ,

Top Analyst Upgrades and Downgrades (AET, APD, ADSK, ENOC, LEN, ERIC, MET, PRGO, PM, VECO)

These are the top Wall Street research calls with analyst upgrades and downgrades early this Tuesday morning:

Aetna (AET) Raised to Sell from Conviction Sell List at Goldman Sachs; no real upgrade.
Air Products (APD) Raised to Overweight at JPMorgan.
Autodesk (ADSK) Raised to Buy at Jefferies.
EnerNOC (ENOC) Raised to Buy at Jefferies.
Lennar (LEN) Cut to Hold at Citigroup.
LM Ericsson (ERIC) Cut to Sell at UBS.
MetLife (MET) Cut to Neutral at BofA Merrill Lynch.
Perrigo (PRGO) Cut to Neutral at Credit Suisse.
Philip Morris (PM) Cut to Neutral from Buy at UBS.
Veeco (VECO) Raised to Buy at Citigroup.

JON C. OGG
JULY 28, 2009

Posted on: July 28, 2009 – 7:37 am in Analyst Calls, , , , , , , , , ,

Media Digest 7/9/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   The promise of mobile TV is being destroyed by smartphone use of software applications.

Reuters:   More attacks on websites in the West are expected and North Korea is suspected.

Reuters:   China has arrested Rio Tinto (RTP) employees.

Reuters:   The age of the media mogul may be over. Read More »

Posted on: July 9, 2009 – 3:07 am in Press Digest, , , , , , , , , , , , , , , , ,

Stress Test Results, Bank by Bank (AXP, BBT, BAC, COF, C, FITB, GS, JPM, KEY, MET, MS, PNC, RF, STT, STI, USB, WFC)

Finally, the stress tests are out for the US banking and financial institutions.  Of the banks, 10 of 19 banks need a combined $74 billion of equity.The good news is that a few companies were given essentially a clean bill of health, such as American Express Company (AXP), BB&T Corp. (BBT), Bank of New York Mellon Corporation (BK), Capital One Financial Corp. (COF), Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM), MetLife, Inc. (MET), State Street Corp. (STT), and USBancorp (USB).

We have broken these down in a single unified and summarized report that shows each bank or financial institution along with an estimated market cap to show what the capital requirements are as far as what each bank will need to raise versus what shareholders already have at stake.   We summarized the list below, and be advised that the tier 1 capital is the total tier 1 capital rather than the Tier 1 Common Capital.  Also be advised that the SCAP BUFFER is the term used for the capital needed to be raised, and that is inclusive of capital raised and from infusions.
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Posted on: May 7, 2009 – 4:59 pm in Banking, Financial Stocks, Regulation, , , , , , , , , , , , , , , , ,

Media Digest 5/1/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperAccording to Reuters, lenders will object to the Chrysler Chapter 11 filing.

Reuters reports that Switzerland  is asking US a court to halt a case against UBS (UBS).

Reuters reports that SMFG will buy Citiroup’s (C) Japan units for over $5.6 billion.

Reuters writes that Cuomo said that pension kickbacks are a national problem. Read More »

Posted on: May 1, 2009 – 3:00 am in Aerospace, Airlines, Autos, Banking, Consumer Goods, Earnings, Oil & Gas, PC Companies, Press Digest, Software, Wireless, , , , , , , , , , , , , , , , ,

Media Digest 4/14/2009 Reuters, WSJ, NYTime, FT, Barron’s

newspaper12According to Reuters, Ebay’s (EBAY) shares are cheap by many measures but investors are avoiding the company, while Amazon’s (AMZN) are so expensive that investors are concerned.

Reuters reports that the SEC will examine whether Bank of America (BAC) broke the law by failing to disclose Merrill Lynch bonuses.

Reuters reports that Obama will tap the Fannie Mae (FNM) CEO to run the TARP.

Reuters writes that Fed official Fisher says the China will not do anything to hurt the US economy because of the critical bonds between them

Reuters reports that Chrysler creditors may ask for equity in a company that combines it with Fiat.

Reuters reports that Goldman Sachs (GS) beat forecasts and will raise $5 billion to pay TARP obligations. Read More »

Posted on: April 14, 2009 – 2:56 am in Press Digest, , , , , , , , , , , ,

TARP Revisit: Were Life Insurers On the Brink? (MET, PRU, HIG, LNC, GNW, AIG)

burning-money-pic13There is one question that keeps making the rounds after the news of yesterday’s TARP bailout money inclusion being offered to life insurers.  Are these really close to falling into the abyss, all over again?  You will see the large gains racked up yesterday, but there is a lot more to this than may meet the eye.

Insurer (Ticker)………… Gain… Mkt Cap.. Comment (year stock drop)
MetLife, Inc. (MET)……… 2.36%.. $20.2B.. down almost 66%
Prudential Financial (PRU).. 7.74%.. $10.1B.. down almost 75%
Hartford Financial (HIG)…. 13.5%.. $3.12B.. down over 80%
Lincoln National (LNC)…… 32.80%. $2.3B… rose on debt repayments
Genworth Financial (GNW)…. 11.48%. $1.0B… down almost 90%

The questions and discussions that came from the financial community to us yesterday about the TARP money were not so much around the “freshness” of the data.  Some insurers had been in line for months.  The TARP was meant to allow for inclusion of some insurers which had bank holding companies, and some insurers had been complaining that they were being left out or being put at a competitive disadvantage after American International Group Inc. (NYSE: AIG) was receiving so much bailout money.  The issue boils down to liquidity, capitalization, and the sheer need of more capital.
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Posted on: April 9, 2009 – 5:08 am in Banking, Financial Stocks, Politics, Regulation, , , , , ,

The Bailout Expands To Life Insurance Firms, Money For The Deceased

water-lilies2There is no end to it, this process of bailing out financial institutions. Once the banks were stable, the rest of the sector was supposed to become more solid. That has not worked. Banks are not yet stable, and the life insurance industry is now stepping forward asking for relief from its plight to become part of the Great Rescue of 2009. Read More »

Posted on: April 8, 2009 – 4:46 am in Financial Stocks, ,

Unemployment Picks Up Speed While Bailout Slows

bear6A new Reuters poll of economists does not offer much hope for an improvement in the nation’s financial condition. Many see unemployment topping 10%. The news service reports that “Median forecasts now assume gross domestic product will shrink an annualized 5.3 percent this quarter, following a brutal 6.2 percent decline at the end of 2008.”

On another front, data from the states shows that four now have unemployment rates above 10% and some have recorded joblessness well in excess of 9%. Read More »

Posted on: March 12, 2009 – 5:06 am in Economy, Politics, , , , ,

Short Sellers May Have Been Squeezed In Citi And GE, But Keep Record Level Positions

bear3Short sellers may have taken a bath in companies such as  Citigroup (C) and GE (GE), but they increased investments in many companies to record levels.

At the end of February, shares sold short in Citi rose 11% to 203 million and shares short in GE were up 10% to 183 million. Shorts wisely decreased positions in most big financial firms. At JP Morgan (JPM) shares short fell 19% to 49 million. Shares short in MetLife (MET) dropped 56% to 8 million. The short interest in Wells Fargo (WFC) dropped 7% to 116 million. Shares short in Goldman Sachs fell 17% t0 14 million. Read More »

Posted on: March 11, 2009 – 3:10 am in Short Interest, , , , , , , , , , , , , , ,

The 52-Week Low Club (GE)(AIG)(MET)(ACAS)(GENZ)

sad_clown1GE (GE) Growing concern that financial division will have heavy write-offs. Drops to $6.85 from a 52-week high of $38.52.

MetLife (MET) One of many insurance companies being pulled down by AIG (AIG). Falls to $13.41 from 52-week high of $65.50.

American Capital (ACAS) Credit rating cut. Sells off to $.85 from 52-week high of $37.30.

Genzyme (GENZ) FDA delays approval of one of the company’s drugs. Plunges to $50.05 from 52-week high of $83.97.

Douglas A. McIntyre

Posted on: March 3, 2009 – 3:59 pm in HI/LOW, , , , ,

Top Pre-Market Analyst Upgrades (CAVM, COST, EVVV, MET, SE, TOT)

Money_stack_picThese are some of the top pre-market analyst upgrades and downgrades we are seeing from Wall Street this Friday morning with more than two hours until the open:

  • Cavium Networks (CAVM) Started as Buy at Piper Jaffray.
  • CostCo Wholesale (COST) Raised to Buy at UBS.
  • EV3 (EVVV) Started as Overweight at Thomas Weisel.
  • MetLife (MET) Raised to Buy at B of A Merrill Lynch.
  • Spectra Energy (SE) Raised to Hold from Underperform at Jefferies.
  • Total S.A. (TOT) Raised to Buy at Citigroup.

Jon C. Ogg
February 6, 2009

Posted on: February 6, 2009 – 7:27 am in Analyst Calls, , , , , ,

The 52-Week Low Club (BIDU)(CAR)(MRT)(UTHR)

Sad_clownBaidu (BIDU) Looks like a little run-in with the Chinese government. Down to $130.51 from 52-week high of $418.22.

Avis Budget  (CAR) Downgraded by Barclays on debt concerns. Off to $.88 from 52-week high of $18.

MetLife (MET) Concerns about capital crisis spreading to insurance companies. Hits $22.48 down from 52-week high of $67.21.

United Therapeutics (UTHR) Disappointing drug trial. Falls to $56.29 from 52-week high of $117.82.

Douglas A. McIntyre

Posted on: November 17, 2008 – 3:58 pm in HI/LOW, , , ,

The 52-week Low Club (BIDU)(CAR)(MRT)(UTHR)

Sad_clownBaidu (BIDU) Looks like a little run-in with the Chinese government. Down to $130.51 from 52-week high of $418.22.

Avis Budget  (CAR) Downgraded by Barclays on debt concerns. Off to $.88 from 52-week high of $18.

MetLife (MET) Concerns about capital crisis spreading to insurance companies. Hits $22.48 down from 52-week high of $67.21.

United Therapeutics (UTHR) Disappointing drug trial. Falls to $56.29 from 52-week high of $117.82.

Douglas A. McIntyre

Posted on: November 17, 2008 – 3:58 pm in HI/LOW, , , ,