Has any analyst put a valuation on AIG? We know they owe $80bil+ or whatever to govt. Mkt cap is $5bil. They are doing an IPO in Asia for $4bil. Is the remaining biz only worth $1bil? Or is it just impossible to put a # on it because of the govt wildcard? Back to $2 now at $40 after the split. Is it worth $4, which would be $80? I don't know if its all short squeeze. If the thing can trade more in a day than the float, are guys still really struggling to cover their shorts. You still can't really borrow a lot so I guess the short interest is up there. Are they new shorts every day who are forced to cover the next day? Love to hear if anyone has heard an actual valuation in a breakup. Thx.
With the levels of 7.00 looming I see the stock to go to 100 in a few months. I called it at .50 per share pre split. Its a no brainer. Once they sell off the toxic assets the business model will work with realestate prices at these levels. They can make money off the writing of the same policies that got them in the trouble at the same time. Imagine writing puts on a stock at its low. Your downside is 30% and you have unlimited upside. The new age of CMO is about to surface. Just remember who called the trade of the century.
Since I have a mental block against buying dips on stocks that are growing to the sky, I opened my sim trading account and bought AIG dips. This was a SIM account and it was still the scariest thing I ever did, the way that thing was moving, I could hardly keep the price in view, and buying a high flyer that's pulling back to the trend line, yikes! Talk about easy money though, made $3354 unreal dollars. OK, I get the message now, loud and clear, DON'T FIGHT THE TREND!
Now that investors see a 51 dollar price they would invest here. Remember that the non trader is an idiot. They check charts which don't show that the stock was a split. If you were an institutional player you would look great owning the comeback kid. Once the govt sells AIG when it hits 500 they will have paid back all their investment. The Govt is the ultimate schlock firm.. Im glad I paid my taxes last year. AIG is made up of a lot of investments. SO as the market goes higher they also go higher. They are a holding company. Once they go profitable they remain profitable. If the swine flu doesn't wipe us out then we should do good. BY the way the Tamilfu doesn't work. Wash your hands and buy canned goods.
This bubble will pop and it will be spectacular. My guess is the end of the month or whenever the Fed complies with the court ruling.