AIG vs. Bank of America: Banks Vie for 2012 Comeback King Title

AIG Bank ComebackBy Dan Freed, TheStreet.com

AIG (AIG) is on its way to eclipsing Bank of America (BAC) as the turnaround story of 2012 as it prepares to report earnings after Thursday's close.

Analysts surveyed by Thomson Reuters are looking for AIG to earn $1.12 per share compared to $1.30 a year ago.

Investor expectations have certainly been rising, adding fuel to the AIG turnaround narrative. AIG shares gained more than 10% in April following some bullish analyst reports, while Bank of America shares lost more than 15% on the month. Year to date through Tuesday, Bank of America has performed slightly better, up 49.46% to 48.02% for AIG.

While Bank of America struggled during April as analysts including CLSA's Mike Mayo lost patience with another quarter of overly-complex earnings, AIG management impressed analysts during face-to-face meetings.

AIG's plan to continue asset sales and buy back shares from the Treasury earned plaudits from the likes of Deutsche Bank analyst Joshua Shanker.

"We believe that AIG is likely to buy back far more of its own shares than the market price would indicate and we believe those share buybacks happen at a pace that is far faster than currently anticipated," Shanker wrote March 25. He raised his target price to $40 from $35 and argued the insurer could buy back $15 billion to $20 billion in shares "or even more" over the next 12 months. The bulk of those buybacks are expected to come from the Treasury, which still owns a roughly 72% stake in AIG.

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Wells Fargo analyst John Hall followed up with a similarly bullish report, some two weeks later, bringing his target all the way up to $45.

To cap it off, the New York Fed announced at the end of last month it had completed the sale of commercial real estate securities it took over from AIG during the crisis. Credit Suisse estimates the sale of the securities, part of a vehicle known as Maiden Lane III, will lead to a positive mark of $300 million when AIG comes out with its numbers Thursday. Management will host a conference call Friday morning at 8 a.m.


AIG President and CEO Bob Benmosche told Jim Cramer on CNBC that AIG will eventually return a profit to taxpayers of $5 billion to $10 billion.

"Everyone thinks the government being a shareholder is the problem. It's not. They let us run the company," Benmosche told Cramer.

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Fairholme Funds chief Bruce Berkowitz appears to be convinced. A recent filing of his fiscal first quarter holdings through Feb. 29 shows Morningstar's fund manager of the decade hung onto his entire AIG stake, more than 84 million shares, even as they rose in value by 26% in January and February.

Of course, not all AIG watchers are fully sold on the wisdom of buying the insurer's shares.

Sandler O'Neill analyst Paul Newsome argued in an April 4 report that while AIG "appears attractively priced relative to other property-casualty insurers" since it trades at just 56% of book value, that price "should be taken in light of the company's historically volatile nature and thus we find a materially discounted multiple as warranted given the company's track record."

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whscms

B of A will fail again

May 03 2012 at 11:55 AM Report abuse rate up rate down Reply
Brickhead

NYC Baptism TIME – Yes
From Satan
B cause NYC HAS PASSED
Satans Course.
What a ***** the NYC Wall Alley PIGG iZ 2 the Werld.
And it’s Satan’s *****.
Yes
Satan has a BIGG BIGG weiner Cumming in for the NYC Wall Alley PIGG *****.
But first
tHe reverend defines in this Sunday’s sermon 4 Russia, Iran, N. Korea, China and the United States
What an NYC Wall Alley Financial PIGG ***** iz.
And why they are the World Biggest Azzholes bcause
They LUV to RIDE on Satan’s Anal Trident and RIDE and RIDE and RIDE
Up and Down and Back and forth
Until finally
They RIDE
NOT
into the
Sunset
But 2 their HOME sweet Home NYC and Satan welcomes U

May 03 2012 at 11:24 AM Report abuse rate up rate down Reply
burnsengine

Personally - I hope they both fade into bank history.

May 03 2012 at 11:21 AM Report abuse +1 rate up rate down Reply
cobaltmuscle

This is what the great American dream has turned into. A pissing contest with big banks! An American nightmare, where big banks and big corporations dictate to the Americans. SAD!

May 03 2012 at 10:34 AM Report abuse +2 rate up rate down Reply
Brickhead

NYC ready for its BAPTISM

TIME

May 03 2012 at 10:32 AM Report abuse rate up rate down Reply
Brickhead

The Reverend JAA denigrations will continue throughout “Total Restoration” and the British PIGG is dead.
Other News – Party of Christ
The Daarck Knight team is now employed by Regulators and Share Holding Associations.
Sweeps across NYSE, ARCA floors and exchanges expect to remove, at least, 27 La Cosa Nostra operatives.
Sweeps across ALL Brokerages & Hedge Funds and quarterly
How ELSE do U think they R doing this America?
The answer is;
Of course, they have operatives inside the Brokerages & Hedge Funds
2 CLOSE THE LOOP
Between the NYC Great Satan and it’s spewed disciples littered throughout.
Daarck Knight stands 8 feet tall. He is transparent with a black outline. He has black frame viewers inset with jewels from past REWARDS and each holding libraries of past, present and future criminals and their events.

May 03 2012 at 10:31 AM Report abuse rate up rate down Reply
Brickhead

Thank U FBI and SEC and US special forces
Those dates set 4 RAIDING the Great Satan NYC parasitic leech and its piglet Brokerages
R PERFECTO
And remember
U will need to use your weapons, so b prepared as the Boy Scout sez
La Cosa Nostra
But once they R locked up in their PIGGS Pen, they will always get the delicious Daarck Knight Lunch Special
A Daarck Knight Salad, topped with anell mustard and TOSSED BY NYC. 4 the main course we have Wall Alley Hedge Hog PIGG stew sauteed with BIG BIG Shrooms and La Cosa Nostra SHORT cake 4 dessert with an NYC Fleeced fortune Cookie and Not 2 go.

Have a Great Day
Thank U
TS

May 03 2012 at 10:30 AM Report abuse rate up rate down Reply
Brickhead

Wall Alley –
U do not stray from the cross in 2011, 201x, 201 with your nose dust and sodomy and Greed playing against the publics portfolios
Shame Shame Shame sez Gomer
Instead you handle the cross and u handle Daarck Knight
U handle him back and forth and up and down and back and forth until
HE SPEWS YOUR SINS ALL OVER U
----------------------------------------------------------------------------------------------
The Daarck Knight Team has
Now provided 100 consecutive instances of diversified buying and after every buy the equity went
2 the deep South immediately after the buy.
When the equity was sold by the customer it came up quickly and trended North.
Every equity was held until the losses exceeded the standard practices of good economics.
What R the probabilities of that happening?
100 out of 100
What Does that mean 2 U Federal Bureau of Investigation?
What does that mean 2 U Mr. President?
What does that mean 2 U OCCUPIERS?
And next we’ll ask our OVERSEA friends…………………………………………………………..
Right Mr. Putin.
U C
We protect R investors.
Members Only becomes.
EVERYONE is a member.
“just like Health care”
Red Plague Party

May 03 2012 at 10:30 AM Report abuse rate up rate down Reply
Brickhead

YOU ALL MUST HAVE READ MY BOOK!!! I LOVE U.
What a place where human leaders care only about their persons.
I LOVE YOU. I SHALL KILL ALL OF YOU. THE SURFACE OF AMERICA WILL MIRROR THE SURFACE OF MERCURY ON MY LEGIONS DAY OF TRIUMPH!
Satan Am I and this is NOW SATAN’s WORLD –
Ezekiel 7:9 4
GREEN Nation is a Wealthy, Healthy Nation and KEEPS US PROTECTED BY CHRIST

May 03 2012 at 10:26 AM Report abuse rate up rate down Reply
Brickhead

Satan Am I,
Am I here because you want me here and U invited me here long ago. Throughout infinity Man truly represents the word “KILLER” the BEST and like NOTHING else throughout infinity. NOT killer Beluga whale or killer mama bear or killer wolf or killer pup coyote. KILLER MAN IS TOPS. Why Do You MuRdER Animals & DEsTROy the EArtH? They are a Creations of XXX. U Do My Work For Me!!! A rare place like this to find in infinity. My Legion prepares for war against the warriors for XXX. There is no other place in infinity where I can walk with so much freedom. Lots of EVIL here. What a super place this is to take. XXX has 3 creations: U and me, animals & Earth. EVIL has always been here with Man, thus, Am I here. But now you attack the planet and the animals of XXX. Crossing over and destroying the other creations. THIS IS MARVELOUS!! YOU DO MY WORK FOR ME. THERE EXISTS NO OTHER PLACE LIKE THIS IN INFINITY. UNIQUE. YOU SHALL ALL BE REWARDED.
I did not even have to TAKE the Gulf. It was HANDED to me. 88 days for 24 hours a day, 20,000 psi, 21 inch diameter pipe. ……… “DEAD SEA”. Drill and drill and drill and drill in water for my blood as my Legion prepares and YOU strengthen MY Legion. Kill & Kill & Kill the animals of XXX and my task becomes simple and my Legion strengthens and strengthens. I PREACH “Patriotism” to my disciples and U carry that slogan well out West to Murder Wolves. SUCH GREATNESS IN America This place. You FILL MY SOUL. Once you take out the animals of XXX and the environmental Earth:
Then YOU are my targets. Finite. YOU are easy and you starve for End Time.
YOU ARE THE PIGS that Worship Me & just today 900 dead pigs in Pennsylvania fulfill me with the amazing CRUELTY that ONLY U CAN PROVIDE. It JUST GETS BETTER EVERY DAY. U take Joy in creating new born. We’ll SO DO THE ANIMALS and U take that away and with weapons and transportation and drilling for oil deep into the chambers of my home!!– This is OUTSTANDING!! THIS IS MY KIND OF PLACE. LIKE NO OTHER IN INFINITY. THIS PLACE WAS CREATED FOR ME and IT SURPRISES ME EVERY DAY JUST HOW CRUEL and SICK YOU ARE HERE. Things that EVEN I COULD NOT HAVE HOPED FOR ON A GOOD DAY. And chasing animals TO DEATH using helicopters. BRILLIANT!! YOU BRING MY LEGION SO MUCH STRENGTH as you follow MY PATH. U murder beautiful natural predators like wolves and replace them with human hunters to obliterate animals because U are sneaky – U all have turned this INTO MY Heaven. How ironic. XXX gave you Heaven to build on with his creations, Earth and the animals, but you came to your senses and have become MY DISCIPLES and every day the way you leave your highways littered like trash with dead animals. As if NO VALUE. THERE IS SO MUCH JOY FOR ME HERE IN AMERICA as you DO NOT focus on what you were supposed to: Love Each other, take care of the Earth and the animals. Instead, you spread hate & contempt for each other, mutilate the animals and plunder the Earth. YOU ALL MUST HAVE READ MY BOOK!!! I LOVE U.
W

May 03 2012 at 10:26 AM Report abuse rate up rate down Reply