GAINSCO (GAN) Analysis - Stock Analysis, Stock Ratings

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GAN has yet to be featured as an InvestorGuide.com Stock of the Day. But read about these related stocks from the Insurance Sector:

Don't Bet the College Fund on AIG
Excerpt from the InvestorGuide.com Stock of the Day on 9/4/2009

One of the juicy stories during these lazy last few weeks of summer has been the transformation of (former) insurance giant AIG from the laughing stock of the financial world to the darling of the stock market. The stock went through an embarrassing 20 to 1 reverse split (to get it out of the penny stock neighborhood) in July and since then has more than doubled in value. AIG is still over 80% owned by the government and owes Uncle Sam $80 billion in loans. But the fact that investors are willing to take a chance on it is partly a result of typical investor behavior after a brutal bear market. For a lot of investors, a 10% gain on a stock is not going to even make a dent in the huge hits they have taken, instead they need spectacular gains to make their money back -- AIG is now being seen as an opportunity to do that. In other words, the stock has become more of a lottery ticket than an investment vehicle.

AIG started August at $13.72, currently it is trading at $40.83 and that is after a pullback over the last couple of days because at the end of August, the stock was changing hands north of $50. So what exactly is going on here? Here are the two oft-cited reasons for the recent bullishness. A) The market is very optimistic about the new CEO, Richard Benmosche, who took office just in early August. Benmosche has been at his boisterous best doing everything from calling out NY Attorney General Andrew Cuomo to proclaiming his independence from Washington and even halting AIG's asset selling spree. Traders have been encouraged by his moves because they believe he is not just a puppet of Washington but is focused on AIG's shareholders. He believes he can garner more value for AIG's assets by improving the businesses and holding out for higher offers. B) The market was encouraged by AIG's second quarter results which showed that the company earned a profit for the first time in six tries. It's impressive that a company which was rescued just about a year ago from the brink has started operating in the green so fast. More >

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AIG Profitable for First Time Since 2007
Excerpt from the InvestorGuide.com Stock of the Day on 8/7/2009

The day's most anticipated report was probably the jobs report, which impressively showed a significant slowing of layoffs. However, competing for the top headline is the news from AIG's quarterly earnings report. Analysts had been expecting American International Group (AIG) to post their first profit since 2007, which the company managed to do, but AIG went far beyond expectations. And yet despite all this, criticism is still coming from all directions. What are the major concerns still facing AIG, and is there any room for optimism? More >

Worst Year for Berkshire Hathaway Since 1965
Excerpt from the InvestorGuide.com Stock of the Day on 3/2/2009

On Saturday, Warren Buffett, the Chairman and CEO of Berkshire Hathaway, announced the company's annual results for fiscal year-ending 2008. Due to the economy and the financial crisis, net worth fell by 9.6 percent. In the past, his letter to shareholders (and non-shareholders) served as a barometer of the economy, as well as a forecast on what to expect in the subsequent year. In the latest one, the Oracle of Omaha stated that the economy "will be in shambles throughout 2009." With this kind of guidance, should investors expect something similar from the company this year? More >

AIG Possibly Nationalized?
Excerpt from the InvestorGuide.com Stock of the Day on 2/24/2009

AIG, the insurance giant that received federal bailouts in September, is probably looking to restructure its $150 billion rescue package again. This second round of restructuring would reduce the company's financial burdens and give US taxpayers more ownership of the insurance giant. If this occurs, it will be announced on Monday next week when AIG is scheduled to post their Q4 results. Analysts are expecting this to happen due to a possible net loss to exceed $60 billion, a figure that some say would force the company into Chapter 11 bankruptcy. If that occurs, then the government's bailout efforts will have been for naught. It is possible the government would be willing to provide more bailout funds to the company, increasing its stake from 80 percent to 100 percent. But at this point, are there any signs of hope for the company? More >