AIG is still holding its long-term uptrend this week after the Treasury Department sold $18 billion-worth of its shares.
Source: Stockcharts.com
The government’s stake is now down to 21.5% of the company. At one point, Uncle Sam held more than 90% of the insurer following the $182 billion bailout it received at the height of the financial crisis.
Eric Steiman, who manages the Undervalued Opportunities investment model, stuck with AIG shares through the planned sale early this week; he assumed the government sale was baked into the stock price already. As of Wednesday, AIG remained one of his top five positions, and he thinks it’s still trading at an enterprise value discount.
Steiman was quoted by Reuters as part of its coverage of the story this week. You can go here to read the Reuters coverage.
