Two more good bargains and long term holds.
AIG- Well, looking at the chart, its at the top of its range I would say. However, this just may break out of the channel. When it was trading at 70+ a year or so ago before the Spitzer news, it was trading with much less earnings. Now the business has expanded and the earnings is so right. I would like to say it goes higher from here.
ALL- All-State raised its rates, cut back on expenses and a number of other things to help it through the hurricane season. uh-oh, no hurricanes, but the rates are still high and will continue that way. Trading at a super-low P/E, but its still a growing company with its new marketing campaigns.
All-State is the best managed insurance company in the United States. The management reacts quickly to perceived problems. The CEO and other management figures were all over CNBC all summer long addressing different issues. Lots of press releases. These guys can pinch a dime tighter then anyone out there. I wouldnt want to be insured by them because I know aftermarket parts will get slapped on my car. I wouldnt want to work for them either. However, I dont mind holding the common stock long term.
Both AIG and ALL are good core holdings for the long term.
A speculative play is KEYS. Take a look. Aftermarket parts maker. Dropped suddenly on Ford winning a decision in court over some parts. Over-reaction in the market. It will be back to 40 soon. Recession wont hurt it. Insurance companies will keep insisting on aftermarket parts.