Pzena on the beleagered financial sector

Read his concise comments here.

Financial/Insurance equities I am watching VERY closely over the summer:

AXP: if it drops to $40 or below, it would be a classic low risk high uncertainty opp that rarely comes in a lifetime. For an exhaustive analysis mentioned before about AXP read this.

LM: mid 40's would be tempting. Trading at 60% discount to FMV because of extreme short term uncertainty. Higher risk than AXP, for sure despite being one of the most respected asset managers in the world.

AIG: currently trading at 0.9 book value (if that can be believed). I plan to make small additions to an existing position as it dips into the $20's.

Y: Low risk and intermediate uncertainty. Off the Wall St. radar. Acquire more in the $330's.

MKL: low risk and low uncertainty. I'm currently buying at $380.

LYG: hoping to add more shares in the mid 20's. Lots of insider buying and an interesting acquisition tender for a German bank (Dresdner Bank) in the offing, showing that Lloyds is exploiting its relatively strong balance sheet versus its competitors current weakness to produce shareholder value for the long term. Dividend 15% with a 60% payout ratio (?sustainable).