Have the markets gone mad?
AIG closed up 63% to $22. Yes, AIG.
The troubled insurance giant — which reports earnings Friday — announced earlier this week that it company would soon get a new CEO. But that was on Monday, and wouldn’t really explain today’s surge.
Speaking to MarketWatch, Miller Tabak analyst Peter Bookvar says that he sees a technical issue at work stemming from the company’s recent reverse stock split. “It’s another example of where the float has dramatically shrunk, and now there’s a massive short squeeze going on,” Bookvar said. “There is certainly no news to account for it (AIG’s stock move), he added.