Barron’s Summary May 7, 2011

  • AIG – neg. comments; the stock is overvalued and prob. worth closer to low $20s; P&C ops may need more reserve additions; a Treasury official said if it can get a price above its B/E level of $28.73/shr, the offering could be $30B+ in size; below that and the Treasury would be more “judicious” in its sales.  The government at a minimum is looking to sell at least 850M shares.
  • Small cap stock picks – pos. comments on WSTL, EGHT, HCKT, ZIXI, FRPT, KOPN, WTSLA, CMRG, TUES, LF. 
  • Fund manager interview – Michael Cook – positive comments on DAR, TRN, ARJ, OGE, URS, AMG, KOP, CBI, MIDD, AGCO.
  • NOK – cautious comments; the stock may rally if NOK can bring Windows devices to market sooner than expected but the odds of the co succeeding in a market dominated by the likes of Apple and Android are slim.

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