There’s a coiled spring at $35 support on an American International Group (AIG) chart. According to CNBC, the company is holding a weekend meeting, and believes that the current CEO is on thin ice with the board. If this is the case, and the CEO is given the heave-ho, upside is a near-term possibility at AIG.
The news follows a June 11 Reuters piece that says, “Shareholders of American International Group Inc are demanding changes to the management and board of the world’s largest insurer, which has been struggling with the fallout of the subprime mortgage mess. Former director Eli Broad and fund managers Shelby Davis of Davis Selected Advisers LP and Bill Miller of Legg Mason Inc wrote in a letter obtained by Reuters that ‘significant and immediate changes at both the management and board level are clearly called for.'”
Any change at the top could be seen as bullish, and catapult beaten down AIG shares. The August 2008 AIG 35 calls (AIGHG) look attractive.