Whitney Tilson’s Bullish Presentation on AIG

0
Whitney Tilson’s Bullish Presentation on AIG
By American International GroupSVG version by JBarta (http://www.aig.com) [Public domain], via Wikimedia Commons

Whitney Tilson's Bullish Presentation on AIG

Snapshot:

• American International Group, Inc. (NYSE:AIG) is a leading global multi-line insurance company with well-managed, sustainable global franchises

Hedge fund managers present their best ideas at Robinhood [In-Depth]

investThe latest Robinhood Investors Conference is in the books, and some hedge funds made an appearance at the conference. In a panel on hedge funds moderated by Maverick Capital's Lee Ainslie, Ricky Sandler of Eminence Capital, Gaurav Kapadia of XN and Glen Kacher of Light Street discussed their own hedge funds and various aspects of Read More


• AIG today is far different from the risky pre-crisis AIG

• Lingering taint from the crisis plus the overhang of US Treasury ownership result in the stock trading at a 41% discount to tangible book value

• We think AIG is worth at least 1x tangible book, and see numerous catalysts in the next year or two to close the valuation discrepancy

• As the US Treasury?s stake declines (likely in part due to Company repurchases) and the stability and growth of AIG?s core franchises become clear, the market will re-value AIG

The Basics:

• Stock price (5/7/12): $31.84

• Shares outstanding: 1.79 billion

• Market cap: $57.0 billion

• Net debt: $74 billion

• Book value: $103.5 billion

• Book value per share: $57.68

• Tangible book value per share: $53.85

• Price/book: 0.55x

• Price/tangible book: 0.59x

• Float: 40% (government owns 60% after today?s offering)

• Short interest: <1%

AIG Today:

• Today AIG is a leading, financially sound multi-line insurance Company focused on its core businesses
• Quality, market-leading franchises in both property & casualty insurance (Chartis) and US life & retirement (SunAmerica) account for ~90% of revenue

Rest in Scribd below:
T2Partners-ValueInvestingCongress-5712

Special discount for our  followers, October 4th, 2012  New York City value Investing congress: Save $2,200 Code: N12VW1 Expiration: 6/5/12  VIC Landing Page

No posts to display