Cramer: Another Reason to Buy AIG
To Jim Cramer, news that the U.S. Treasury plans to further lower the government’s stake in the American International Group is just another reason AIG is a “buy, buy, buy.”
The Treasury has agreed to cut its ownership stake in the insurer to 63 percent by selling 163.9 million shares for approximately $5 billion, with AIG agreeing to buy back about $2 billion worth. Investors who owned the stock certainly made out, considering the deal was priced at $30.50 a share and the stock closed Monday at $31.84 a share. Even if you missed out on the secondary, Cramer still thinks AIG is worth considering.
“With AIG, you’re getting your hands on the greatest and most improbable turnaround story I’ve ever seen," Cramer said. "Under the phenomenal leadership of CEO Robert Benmosche, AIG has gone from an overleveraged, highly complicated financial company into a leaner, slimmed down play on life insurance, property and casualty insurance and mortgage guarantee insurance.”
In turn, he said its stock has been one of the best performers of 2012. It is up 37 percent year-to-date, yet investors are getting a chance to buy the stock at discount, considering it closed down 99 cents or 3 percent from where it ended Friday.
Read on for Cramer’s Ultimate Growth Stocks
—Reuters contributed to this report
When this story was published, Cramer’s charitable trust owned American International Group.
Call Cramer: 1-800-743-CNBC
Questions for Cramer? email@example.com
Questions, comments, suggestions for the Mad Money website? firstname.lastname@example.org