AIG - Good stock buy?

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Stanley said:
I know someone who loaded up on half a million dollars worth of AIG shares, only to see them go up 40c by the day's end. The hard part will be unloading them all.
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AIG traded almost 250m shares yesterday. 500k is NOTHING with that kind of volume and can be sold in a matter of seconds.
 


I'm looking at companies that will be here next year. Most of the financial companies are under priced right now. I say be looking at stock of companies trying to buy some of these dyeing companies. Maybe they know something about their own financial situation we don't. But this has to be long term.
 
I bought 1k shares of aig yesterday at 2.23 and sold right before close at 2.44. Pretty pissed about that right now.
 
CLKeenan said:
Clearly you havent been following the news... tsk tsk. Gotta stay on top of your game my man... let me enlighten you:

SEC bans short selling in hundreds of financial stocks - MarketWatch

Bloomberg.com: Worldwide

Citigroup reportedly considering bid for WaMu - MarketWatch
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LOL ... yes, I realize the Feds plan to assume banks' bad debt... but you don't know just how much or any of the details. The only hope they have is selling off pieces of the company or finding a buyer for the entire business. Any bounce up in the stock from here are just shorts covering.
 
pocketrockets said:
LOL ... yes, I realize the Feds plan to assume banks' bad debt... but you don't know just how much or any of the details. The only hope they have is selling off pieces of the company or finding a buyer for the entire business. Any bounce up in the stock from here are just shorts covering.
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WM won't even need to sell off the company anymore if the Gov takes on the bad debt. They are kicking ass and taking names right now on the retail banking side in terms of deposits.
 
Anyone waiting for AIG to go back up to 20/share is going to be waiting a while, the 80% equity that went to the Fed means huge dilution of the shares that are out there.
 
I am slow to invest in the stock market. I mainly follow Warren Buffet's advice of investing in Main Street. Instead of looking at the Wall Street numbers he goes and looks at the company. He reads their financial statements and tours the company. He also usually only invests in companies that are family owned. To invest in AIG seems risky only b/c the government has bailed them out. I have not read of any concessions on their part so it seems like a blank check was given. Now the CEO's are figuring out how to get a golden parachute when they collapse the business.
 
CLKeenan said:
WM won't even need to sell off the company anymore if the Gov takes on the bad debt. They are kicking ass and taking names right now on the retail banking side in terms of deposits.
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Um, yeah sure.

Hope you were able to dump those WAMU shares...

Ouch... $1.51 today, a new low...

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CLKeenan said:
I was up 102% on my investment in Washington Mutual at one point during the day :) I'm still in the high high XX% right now :)
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Dang, hope you didn't lose your shirt, they just failed.

By the way, the reason that financial institutions have been busting ass and running advertising to get new depositors is because they are short on cash.

eTrade was doing this last year, offering high interest rates on accounts. Probably the only reason they have survived was from Eddie Lampert dumping a few billion into them.
 
I would suspect that AIG at a buck a share is probably a good deal -- I doubt they will fail at this point... since they have been "saved".

Either way - you buying their stock helps them not fail :) - Since they insure my cars buy away.
 
$5 Submissions said:
But would this happen to AIG now that it's been bailed out?
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Of course it could...

Here is a summary of recent bad news and red flags-

- the Gov. now owns 80% of the equity
- AIG surrendered this equity to take an $85 BILLION loan at an 11% interest rate!

- the ex CEO Greenberg just dumped 40 million shares worth about $120 million at $3 (gee, why doesn't he just leave his stake alone if this is such a 'good deal'?)

- the recent agreement with the gov is going to cause major dilution to the shareholders

- god knows what else AIG is hiding in it's books and accounting...
 
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