$29.89
-1.30 (-4.17%)
American International Group, Inc. (AIG)
CAPS Rating:
A holding company which, through its subsidiaries, is engaged in a range of insurance and insurance-related activities in the United States and abroad. Its primary activities include General Insurance and Life Insurance & Retirement Services operations.
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American Internataional Group's ONE for TWENTY reverse stock split today caught me slightly off guard. It made me wonder if I really knew it was the AIG ticker I thought it was!!! :)
While equities do best when priced above $5 per share, (more open to institutional investment and avoids delisting concerns), the ONE for TWENTY, instead of a ONE for TEN is "telling" in regard to AIG's own "opinion" of their outlook. Liddy vocalized it at their stockholder annual meeting this past Tuesday as he announced he was stepping down. "Chief Executive Ed Liddy said at the annual meeting that he could not give any assurance that the shares would ever recover or that the U.S. government would ever relinquish its majority ownership of the company." As a "puppet" company, AIG's strings are being pulled by the government who will continue to use them as a vehicle to push funds or policies to anyone they chose. A one for twenty just buys them more time before they are sub-$5 again.
Believe it or not I actually owned this stock for a short time and got IMMEDIATELY out once I understood the dangers of it. Oh MY God. Now look at this (this is a few months old to be fair - more contracts have been netted out and unwound since then.)
Believe it or not I actually owned this stock for a short time and got IMMEDIATELY out once I understood the dangers of it. Oh MY God. Now look at this (this is a few months old to be fair - more contracts have been netted out and unwound since then.)
Excellent commentary and I agree with you completely. If AIG pulls this off with the government on its tail all of the time, it will be a first on Wall Street. I think Chief Executive Ed Liddy sees the writing on the wall.
AIG must really want to keep investors from collecting AIG stock. I know when it was $2.00 and below people at least bought for no other reason than its a mammoth company and its stock was cheap. Oh, not to mention it was being bailed out and connected to life support powered of our countries printable funds. Why not? With the stock today above the five dollar range I can't see much activity happening except maybe a nice tumble to around $10.00 and maybe less.
I didn't quite expect it to take such a large beating so fast, but all of you are correct, the high $$ per share is doing little good for AIG. As G8Big indicates, it was a speculative stock when it was "cheap". Although 1 for $18 is the same value in your portfolio as 20 for a less than $1, it does sound like you have "more to lose". It was a gamey stock between $0.30 and $2.00, but at $18 it's simply a high risk, low return stock. In regard to the BILLIONS the Federal Gov't GAVE them....most of that was gone IMMEDIATELY. AIG ponied up $1 per $1 of insurance to foreign banks and then tried to scalp US banks. All in all, it was a pass through. If you want to "make your tax money back", you would need to invest in banks that AIG paid, although those banks are not managing their cash very well either. The Feds will continue to use it for all the blame and all the manipulation they need to do, including buying bad assets if needed. There is little opportunity for it to make any real money, especially if it has to service the debt. Good luck.
TSIF is 100% correct...if you want to make profit you need to DD the counter parties who were paid via the back door. We closed our short position in real life this morning never thinking the gain would have been this large this quick. We advise all not to place their hard earned money into this regardless how cheap it becomes.... the only pattern with this stock is every time the country leaders meet whether it is the G8 or the G20 AIG will get the front page.
Here is an old post stressing to the public what this is about
AIG 101
Goldman Sachs and their gambling friends takes out Credit default swaps on all the stocks you owned last year that dropped over 40%.
They proceeds to Naked short the stock to drive it down.... an illegal act that the SEC has failed ever to do anything about even though that is part of their job duties.
This causes panic.
Everyone starts to pull out of the market.
The company's net value goes down.
They are in the red.
They start going bankrupt.
They phone their friends in the government.
The government decides to ban short selling on their friends.
Their friends short your stocks legally and illegally through options or open markets with a computer glitch.
Meanwhile AIG the insurer is paying through their nose to cover the credit default swaps.
The government announces AIG is too big to fail.
Government gives AIG big money.
AIG gives big money to the government friends and a few enemies.
The government states their mad at AIG.
AIG gets madder and produces the list of gamblers while Geithner is out begging the G-20
The government gets back from the G-20 to put out the fire and throw out a spin.
You can not go anywhere without hearing outrage about AIG bonuses.
You can not go anywhere to hear or read about AIG counter parties as that tab is picked up by the US tax payer and deemed not important.
Now Goldman Sachs and gambling friends made money from there naked shorts and cash from the credit default swap paid in full by your Too Big To Fail AIG.
As a gambling friend I wish to profitably thank the Security Exchange Non Accountability Commission for making my early retirement plans possible.
As a Canadian citizen with morals and values how do I sleep at night knowing I stole from Joe the uniformed?
Like Goldman and the government I had invest in an expensive bed.
TSIF is 100% correct...if you want to make profit you need to DD the counter parties who were paid via the back door. We closed our short position in real life this morning never thinking the gain would have been this large this quick. We advise all not to place their hard earned money into this regardless how cheap it becomes.... the only pattern with this stock is every time the country leaders meet whether it is the G8 or the G20 AIG will get the front page.
Here is an old post stressing to the public what this is about
AIG 101
Goldman Sachs and their gambling friends takes out Credit default swaps on all the stocks you owned last year that dropped over 40%.
They proceeds to Naked short the stock to drive it down.... an illegal act that the SEC has failed ever to do anything about even though that is part of their job duties.
This causes panic.
Everyone starts to pull out of the market.
The company's net value goes down.
They are in the red.
They start going bankrupt.
They phone their friends in the government.
The government decides to ban short selling on their friends.
Their friends short your stocks legally and illegally through options or open markets with a computer glitch.
Meanwhile AIG the insurer is paying through their nose to cover the credit default swaps.
The government announces AIG is too big to fail.
Government gives AIG big money.
AIG gives big money to the government friends and a few enemies.
The government states their mad at AIG.
AIG gets madder and produces the list of gamblers while Geithner is out begging the G-20
The government gets back from the G-20 to put out the fire and throw out a spin.
You can not go anywhere without hearing outrage about AIG bonuses.
You can not go anywhere to hear or read about AIG counter parties as that tab is picked up by the US tax payer and deemed not important.
Now Goldman Sachs and gambling friends made money from there naked shorts and cash from the credit default swap paid in full by your Too Big To Fail AIG.
As a gambling friend I wish to profitably thank the Security Exchange Non Accountability Commission for making my early retirement plans possible.
As a Canadian citizen with morals and values how do I sleep at night knowing I stole from Joe the uniformed?
Like Goldman and the government I had invest in an expensive bed.
I guess you mean "saw". He resigned.
Agreed. There was a huge sucker's rally that pushed it to almost $2 back in April. That thing fell like a stone back to $1.15 in the same day.
It's fun to hear "other" analysts gang up on AIG as having over ran it's value, (considerably based on some analysts). It's kinda like the pot calling the kettle black. Generally, I'm not too interested in what analysts have to say. If they were so smart, they wouldn't have lost a forture of their stockholders money either! In this case, it's more amusing when they are picking on each other. I'm not sure if I will get all the points back from Mr. Markets recent party, but I suspect that gravity will settle in a bit more in my direction. Good luck.