American International Group (AIG) has been recovering since it was forced to seek bailout money from the Troubled Asset Relief Program (TARP) in 2008, after its poor moves in the subprime business. At the time, AIG required approximately $130 billion to continue in business, which included $85 billion by way of a special credit facility.

The Inspector General has said that some of the money owed to the government may never be repaid. It must hope that this is not the case with AIG, in which the taxpayer is still out by around $50 billion. Having bailed out AIG in the form of loans, the government converted the unpaid portion to common stock in late May 2011. To break even, and repay the taxpayer the money it used to bail out AIG, the government would need to sell its remaining stake in AIG at $28.73 per share. Treasury spokesman Matt Anderson said, “We’ll continue to balance the important goals of exiting our investments as soon as practicable and maximizing value for taxpayers.”

Meanwhile, AIG has continued with its business strategy of restructuring, refocusing, and seeking efficiencies to enhance shareholder value. To this end, the measures that it has taken recently include:

• Restructuring the geographic lines of its subsidiary Chartis. This should allow greater concentration on autonomous country headquarters where growth economies offer greater profitability (announced 01-17).To continue reading, click here.
  

Over the last few years major oil companies have become the target of environmentalists, politicians and consumer advocates. The biggest reason is from consistently high prices charged for crude oil and gasoline. For investors these stocks appear to be enticing because of the potential profit margins. However, several major players have recently announced challenges associated with the refining portion of the business. In this article, I analyze Anadarko Petroleum (APC), Conoco Phillips (COP), Chevron Corporation (CVX), Petro China (PTR) and BP PLC (BP) on a relative value and earnings basis. My analysis and ideas should be used as a starting point for all future research.

Anadarko Petroleum

Anadarko Petroleum trades at a forward price earnings ratio of 23.18. The balance sheet includes $12.98 billion in revenues, $3.29 billion in cash and $13.94 billion in debt. The earnings have been volatile over the last three quarters going from $.29 to $1.14. Then declining in the third quarter of 2011 to $.66 (see below).

Anadarko Petroleum Earnings per Share

Despite these numbers, the price of the stock is above the 200 day moving average of $75.81. The bullish move in shares follows a test of support at the 200 day moving average earlier in the month. The divergence in these numbers is from the company focusing on exploration. These activities are taking place off of the coast of West Africa with major discoveries in areas such as: Mozambique and Ghana. The momentum is showing how investors are bidding up the stock.

The recent volatility in the markets and lack of confidence about future growth are making dividend stocks attractive. The reason why stems from the belief that these kinds of companies can provide income and earnings stability. To determine the strongest firms for 2012 requires examining Altria (MO), Partner Communication (PTNR), Hudson City Bancorp (HCBK) Energy Transfer Equity LP (ETE) and AT&T (T). Therefore, use this information as a starting point for all future research.

Altria

Altria yields 5.70% and has a payout ratio of .82. The firm has a forward price earnings ratio of 13.18 and earnings have been rising consistently over the last year (going from $.44 to $.56). This is helping to fuel bottom line growth of 21.16 % in profits. There is a current ratio of 1.49. Moreover, the stock is trading in a bullish technical pattern with shares trading above the 200 day moving average of $26.55.

These factors are showing how the dividend rate for Altria will increase in the future. The firm is attractively valued and has above average rates of growth. While the sale of tobacco products, alcohol and fuel hedging strategies are providing consistency in earnings. The majority of profits are paid out to shareholders in the form of a dividend. This has pushed the stock price higher (which is protecting Altria against inflation and sudden changes in the economy).

As a result, this stock is an ideal purchase for the dividend. In the future, yields will more than likely increase from strong profit margins, a sound business model, ample liquidity and stable earnings.To continue reading, click here.

Rising tensions in the Middle East are likely to play a huge role in energy stocks this year as the threat of an oil embargo on Iran or a conflict over the Strait of Hormuz could send energy costs through the roof. Your portfolio should contain a few decent energy stocks in order to take advantage of potential gains in the sector this year. Start looking out for explosive movement in the energy sector as the West continues to move its energy interests away from Iran. The following energy companies stand to gain from a collapse in relations with Iran due to their interests in other areas of the world which will be required to ramp up production to fill the void. While geopolitical factors stand to benefit these stocks over the short term, caution should be exercised with Anadarko and Quicksilver. Please use my research as a starting point for your own due diligence.

Suncor Energy (SU) is a safe buy into an oil company that does not stand to lose any resources in the event of a political crisis in the Middle East and is able to benefit greatly from an increased demand. Suncor’s profits have already been on the rise over the past three to four years with the company reporting $3.5 billion in 2010 compared to only $1 billion the previous year. It maintains consistency and shows signs of being extremely well managed. I see little risk in this stock with a potential for gain, making it a worthy stock to take a position in this year.To continue reading, click here.

This articles continues my focus on biotechnology stocks. I have included a table for each stock to aid us in staying on point. These biotech have an upside catalyst, making them great candidates for further diligence.

Gilead Sciences Inc. (GILD), trading at about $45.00 per share, is a large cap ($33.72 billion) focused on discovering, developing, and commercializing drugs to treat life-threatening infectious diseases. It has 4 products on the market for the treatment of HIV infection in adults. It also markets Hepsera, an oral formulation for the treatment of chronic hepatitis B, and AmBisome, amphotericin B liposome injection to treat serious invasive fungal infections, to name a few.

It is also close to completing the acquisition of Pharmasset, Inc. (VRUS), which is researching nucleoside/tide analogs for the treatment of chronic hepatitis C virus (HCV) infection, an obvious parallel to GILD’s work on the hepatitis B virus. Gilead has no fewer than 20 therapies in its pipeline, with 5 of these in Phase III. The company is adequately capitalized and has a manageable debt load. It has experienced no significant roadblocks and has an excellent management team on both the business and scientific fronts.

Onyx Pharmaceuticals, Inc. (ONXX) is a mid cap ($2.81 billion) and trading at around $44.00 per share. To continue reading, click here.