Aviva Executing, But The Stock Continues To Test Patience

There are many types of value traps, but one of the most frustrating is when a company executes on its self-improvement plans but can't get much love from the market. Such is the case with Aviva (OTCPK:AVVIY), which has continued to underwhelm in the market since my last update, particularly when compared to the likes of Prudential plc (NYSE:PUK), AXA (OTCQX:AXAHY), and Legal & General (OTCPK:LGGNY). 

The company has done well with its acquisition of Friends Life and subsequent restructuring efforts that have seen it sell down stakes in non-core areas and boost performance in areas like asset management. Nevertheless, the market still seems skeptical about the company's ability to generate meaningful growth and translate excess capital into liquid capital that can be returned to shareholders. Although I don't expect Aviva to be any sort of growth champion, I do believe the company can grow at a mid-single-digit rate, supporting a fair value about 20% higher than today's price.

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Aviva Executing, But The Stock Continues To Test Patience