Still, reaping that return would have required nerves of tempered steel, as the shares produced stomach-churning volatility: During that period, the stock suffered a peak-to-trough loss exceeding 50% three times!
That’s the past; what of the future? Neither General Motors Company (NYSE:GM) nor American International Group, Inc. (NYSE:AIG) is an outstanding business, but they do have a franchise. Valued at 10 times the next 12 months’ estimated earnings per share versus AIG’s 12.5 times, GM now looks the better-positioned stock to deliver market-beating returns.
The article Why These 2 Bailout Stocks Are Up Today originally appeared on Fool.com.
Fool contributor Alex Dumortier, CFA has no position in any stocks mentioned; you can follow him on LinkedIn. The Motley Fool recommends American International Group, Inc. (NYSE:AIG) and General Motors Company (NYSE:GM). The Motley Fool owns shares of American International Group and has the following options: Long Jan 2014 $25 Calls on American International Group.
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