American International Group, Inc. (AIG)

For AIG to be trading at this price ($38.00 - 11/5) is absurd. The only reason it is still in business is because it has powerful friends. Give a bum a dollar and he will need more later.

My Rationale: Common Sense.

American International Group, Inc. (AIG) is a holding company which, through its subsidiaries, is engaged in a range of insurance and insurance-related activities in the United States and abroad. AIG’s primary activities include both General Insurance and Life Insurance & Retirement Services operations. Other significant activities include Financial Services and Asset Management. The Company operates in four segments: General Insurance, Life Insurance & Retirement Services, Financial Services and Asset Management. Through these operating segments, AIG provides insurance, financial and investment products and services to both businesses and individuals in more than 130 countries and jurisdictions. In December 2008, AIG’s United States life insurance companies sold its residential mortgage-backed securities portfolio to Maiden Lane II LLC. On April 1, 2009, AIG completed the sale of AIG Life of Canada to BMO Financial Group, and Hartford Steam Boiler to the Munich Re Group.

The unstable stock price matches this unstable company. It had a nice percentage gain today, which reminds me of GM after it went bankrupt. Short term sell.

basic explanation:

The stock is cheap if you take in consideration the reverse stock split they did in the last couple of months, that means that his real value is now less than 2 Dlls ,

they still have a lot of assets, that are worth more than the actual price of the stock. Economy is picking up, and let's face it being the FEDS the major investor as now (79.9%), there is only one way this stock is going to go.

I can foresee this stock to be around the $100 Dlls soon, before they split the stock again to go back to the original value, which would push it up very fast probably to the $ 40 dlls range. Which is not what it used to be but is pretty good for a stock that would cost you 2 Dlls, am I right ?

Too much debt

was'nt this worth like a buck yesterday.
part II

This company is virtually worth nothing right now and until the Feds takes their grubby hands off, IT CANNOT GO UP

just got a hunch

Could 80% nationalised AIG earn money ?
What an insurance have to do ? Calculate risiko and control abuse.
The objective is not to speculate with prime in short term and pay bonus for manager who do that.
Insurance is useful for a lot of people who pay the prime and hope to have help when they need. Shareholder have a social responsibility and need to control what is done.
Political could do it well and if the job "calculate risiko and control abuse" is well done, shareholder and management will earn money. The question is just, how long it will take until the old mistake will be erase...

Very bad company which would need 20 years to repay all debt, even if returns to old profitability...
My opinion is that fair value is under 10$, definitely not more than 20$

I know this is a company with alot of problems but i'm looking at how much the stock price has increased and wish i had bough a couple hundred dollars worth when it was much cheaper.
I don't have much money to invest being awalmart employee. I buy thier stock through the company.
i don't know to much about stock investing but have been learning .My prediction for AIG is ageuse based on past performance.

A company that has the government's backing and support, its shares are traded at 10% of book value and analysts opinion is for a net earnings of 13% of the current share price (P/E 7.7).
If this was true - wouldn't you buy it?
Well it is true!
According to the SEC filings, AIG shareholders equity as of June 30, 2009 was $57.9 billion.
The market Cap according to Yahoo is $6 billion. That's 10.3%
Average analysts estimates for 2010 earnings is $5.83 per share.
Current share price is ~$45. That's 13% or P/E 7.7
I read a lot of bearish opinions about this share. I may be wrong with my
simplistic analysis, but can someone give a simple based-on-facts explanation for being bearish on this stock?

They are so d*mn big and with their 1 for 20 reverse stock split recently and the taxpayers' money propping them up, they have streamlined operations and managed to hang on. I expect their will be more paybacks (to the US taxpayer) coming from them, a forward stock split fairly soon and they'll continue to be more stringent with their requirements before issuing default insurance (swaps). Though they are still a greedy bunch of insurance people , they have come back from the fantasy land they were living in where none of these swaps would ever need to be turned into claims and therefore payouts. The sleeping giant has awakened.

Because everybody needs insurance

outperform

Upthumb. Significant unmapped value in the event of a continued recovery and extension of time to unwind corporate assets. In addition, change in GAAP requirements for certain mark-to-market assets has produced a significantly altered valuation dynamic moving forward from April.

Woot ! Hey, I can't help it.... I'm riding the CRAZY TRAIN !

This is a very dangerous play, I will advice investors to get out from this one ASAP.

The strategy in my opinion is to sell parts of the company that are less profitable, however they need to pay back the government and for that they will be forced to sell some efficient and profitable units as well worldwide.

The government helped this company and therefore it is not in its best interest a sudden drop, it will be slow, bit by bit..

I believe that this company may fail for bankruptcy over a period of 1 to 2 years, I will stay out of it.

They aren't going to pay off the government any time soon, the interest on the loans is going to continue killing them. They are going to continue selling business units until 5 years from now AIG is a shell of what it used to be (and a shell of what it is now). True equity worth is ZERO.