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S&P Picks and Pans: AIG, Dell, 3Com, Kohl's, United Rentals, Novell

Opinions on stocks making headlines Friday

S&P REITERATES SELL RECOMMENDATION ON SHARES OF AMERICAN INTERNATIONAL GROUP (AIG; 50.15:

AIG reports $1.40 Q4 operating loss vs. $1.27 operating EPS. Full year operating EPS was $3.31 vs. $5.35, below our $6.35 estimate. 2007 full-year results excluded a $2.87-per-share charge to write down credit default swaps. We believe the asset writedown is embedded in AIG's current valuation. But we remain concerned that a number of core operating units are facing eroding fundamentals, and see this pressuring the shares. We are cutting our 2008 operating EPS estimate by $1.80 to $5.25. We keep our $43 target price, which assumes shares remain discounted to historical averages. - C.Seifert