American International Group, Inc. (AIG)

The Feds own it

Feds continue to protect the assets since feds own %80 of AIG

ultimate winner of the crisis

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 ?

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...

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 business will not fail. The governement owns too much to let it go under. Now it may take years to pay off the loans, and it will never return to its former self, but it will be profitable again.

realization is "poor" is dependent of "where"...
somewhere betwen workable assets and services rendered...

Our US Government has sunk almost 200Billion into
this Firm, It can't go down

speculation keeps this stock alive. The slightest glimmer of good news = big jump.

FOR YOU THAT THOUGHT I WAS NUTS TO BUY AT $1.00, THEN THOSE THAT THOUGHT I WAS NUTS TO HOLD AND THOSE THINK I WAS STUPID TO HOLD AFTER THE REVERSE SPLIT - THIS IS FOR YOU:
NA - NA - NANA - NA!

Here is the deal. I picked this to outperform, it underperformed. Frustrated I changed it it underperformed. It shot straight up. I changed back to outperform because it was going to reach a brazillian dollars. Now the free fall begins. I guess the best thing is to do the opposite of my pitch. And, as always, it is time in, not timing the market.