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.
- The company ranks the third on capitalization in the sector of “Insurance” among the issuers traded in the American stock market;
- Yesterday the company issued report for Q1 of the fiscal year 2016. Company’s revenue amounted to 11.78 billion USD against the forecast of 12.69 billion USD. In the reporting period operational profit of American International Group fell by 46.7% to 0.65 USD per share, which was lower than the forecast of 0.99 USD per share;
- At the press-conference company’s management stated that financial performance of the company was lower than expected market expectations amid high volatility in the financial markets;
- The weakest segment of company’s activity were corporate and consumption insurance. Operational profit before taxes has dropped by 39% and 17% respectively;
- In the near future the company plans to earn over 1.5 billion USD by selling shares of PICC Property & Casualty Co. Ltd. AIG also continues to prepare IPO of the insurance company United Guaranty Corp.;
- During Q1 of the fiscal year 2016 the company bought back shares for the amount of 870 million USD. Implementation of this program suggests that company’s management has positive prospects for future development of the company.
- Despite the decline in revenue and profit, the company has strong growth potential. Successful implementation of the investment projects will contribute to improvement of the financial performance of the company.
- It is likely that in the near future company’s quotes will go up.
Trading tips for CFD of American International Group Inc.
Support levels: 55.45 USD and 54.80 USD.
Resistance level: 56.80 USD
Medium-term trading, Н1
At the moment the issuer is traded in the demand zone of 55.45-55.75 USD. If the price maintains this zone and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 56.75 USD, 58.00 USD and 60.00 USD with the use of trailing stop.
Medium-term trading, Н1:
Short-term trading, М15:
Yesterday the issuer opened trading with the gap down due to the financial results indicated in the last report, which were lower than market expectations. If the price breaks out and maintains local resistance level of 56.05 USD, it is advisable to open long positions in the market. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 56.40 USD, 56.75 USD and 57.25 USD with the use of trailing stop.
Short-term trading, М15: