American International Group Inc., #AIG [NYSE]
Finance, Insurance, USA
Financial performance of the company:
Index – S&P 500;
Beta – 1.42;
Capitalization – 58.73 В;
Return on asset – 0.40%;
Income - 2.20 B;
Average volume – 10.08 М;
P/E - 34.76;
ATR – 1.39.
- In the last three months the company has lost over 20% of its value. Further decline in price is expected.
- The company ranks 21st on capitalization in the sector of finance among the issuers trading in the American stock market.
- On 11 February the company reported for Q4 of the fiscal year 2015. According to press-release in the reporting period company’s losses amounted to 1.84 billion USD. EPS (earnings per share) fell to 1.28 USD from -0.17 USD to -1.45 USD.
- At the press-conference company’s management said that revenues in the fiscal year of the company fell by 13.4%, from 16.07 billion USD to 13.93 billion USD. Analysts predict that the decline will continue up to 13.71 billion USD.
- In the fiscal year of 2016, the company plans to repurchase shares for the amount of 5 billion USD and increase dividend payment by 0.32 USD per share. In the near future the company is going to 400 employees due to deterioration of financial situation.
- Large investment funds and banks (Barclays, RBC Capital, UBS) predict that company’s quotes will go down.
- Outcome of the last report will have a negative impact on investors’ confidence to the company’s management. Currently, financial sector shows high volatile and additional risks. Large investors believe that the company will demonstrate negative dynamics.
- It is likely that in the near future company’s quotes will go down.
Trading tips for CFD of American International Group Inc.
Long-term trading: at the moment the issuer is traded between the local support and resistance levels of 50.40-53.60 USD. After breaking out and testing of the level of 50.40 USD and in case of the respective confirmation (such as pattern Price Action), we recommend to open short positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts at the levels of 49.00 USD, 47.50 USD and 46.00 USD with the use of trailing stop.
Short-term trading: on the chart with the timeframe 15M the issuer is traded near the local support level of 51.00 51.85 USD. We recommend to enter the market after breaking out and testing of these levels. Positions can be opened near the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.