AIG Jumps on Dividend Chatter and 2 Other Hot Stocks to Watch
American International Group (NYSE:AIG): Current price $41.46
AIG has posted its biggest two-day gain since June in New York trading, on hopes that it might resume dividend payments. Shares climbed 96 cents, or 2.4 percent, to $41.58 at 10:44 a.m.; the insurer has rallied 7.7 percent in the last two days. AIG ceased paying a dividend in 2008, which was the year it took a government rescue as mortgage-related losses burned capital. Analyst Jay Gelb at Barclays commented that “we expect a small dividend could be reinstated in 2013.”
Buckeye Technologies (NYSE:BKI): Current price $37.57
The securities litigation firm of Brower Piven has begun an inquiry into possible breaches of fiduciary duty to current shareholders of Buckeye Technologies, along with other violations of state law its board in regards to the proposed buyout of the firm by Georgia-Pacific. The firm’s investigation intends to discover, among other things, whether Buckeye’s boar breached their fiduciary duties by failing to maximize shareholder value. The press release reporting the proposed buyout indicated that Buckeye shareholders will receive $37.50 in cash for each share of Buckeye common stock they hold. Yahoo! Finance reports that the high analyst price target per Buckeye share is $40.
Barrick Gold Corporation (NYSE:ABX): Current price $18.03
Just after a massive sell-off of gold, Barrick posted its first quarter earnings figures, surpassing profit estimates, but giving a clear indication to what might be a new reality in the gold mining universe: rising output costs alongside uncertain, and even falling, gold prices. Barrick Gold saw its first quarter net earnings drop by a whopping 18.5 percent to $847 million, according to the firm on Wednesday. Meanwhile, adjusted net earnings dropped to $923 million, but Barrick did earn 92 cents per share, beating Wall Street’s consensus estimate by 5 cents.
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