Categories: Alpha Algorithm HotlinesStock Market News

An Insurance Play Gathering Steam

This week’s Alpha Algorithm generated a recommendation that has underperformed the broader market in 2016, but has picked up substantial momentum over the past month or so.

Founded in 1919 and based in New York, New York, American International Group, Inc. (AIG) provides insurance products and services for commercial, institutional and individual customers in the Americas, the Asia Pacific, Europe, the Middle East and Africa.

AIG versus S&P 500 over the past month

Six Top Investment Strategies Betting on American International Group, Inc. (AIG)

1.Insider Buying

AIG is among the U.S. stocks that corporate officers, directors and shareholders who own more than 5% of each company’s shares are accumulating.

2. Large-Cap Growth

The stock is among the top 50 large-capitalization U.S. growth stocks generated through a rigorous 10-factor fundamental screening process.

3. Shareholder Yield

Company: (a) pays cash dividends, (b) engages in net share repurchases, and (c) pays down debt on its balance sheets.

4. Hedge Fund Gurus

The stock is one of the top U.S.-listed equity positions reported on Form 13F by select hedge funds with concentrated top holdings.

5. Momentum Factor

The stock also is one of the top 120 large- and mid-cap U.S. stocks exhibiting relatively higher price momentum, as measured by a specific factor which has historically driven a significant part of companies’ risk and return

6. Small-Cap/Value Tilt

Selected using a multi-factor modeling approach, the stock is one of smaller-cap and value stocks designed to enhance portfolio risk/return characteristics.

Recommendation

Buy American International Group, Inc. (AIG) at market today. Place your initial stop at $50.

Options

With the stock technically overbought on the short term, I am holding off on recommending options this week.

Portfolio Update

We were caught by the unexpected drop in Apple (AAPL) earnings announced yesterday.

Nevertheless, the stock remains a holding in six Alpha Algorithm strategies, as of yesterday.

Although the stock is far above your stop price of $91.00, we’ll be keeping a close eye on how the various strategies handle the recent pullback.

Sincerely,

Nicholas A. Vardy

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.