I fully expect AIG to pay-down its Government debt by 2020. Its only 180 Billion. Their best year was 14 Billion. So that's 12-13 years - max. This is just a case of the markets being forward-looking. Investors want to get in at these super-low prices 'cause in 12-15 years, this stock could be north of 100 bucks!
Sounds great! Only you are forgetting they're also on the hook for insane interest (to the tune of 10% APY) on the bailout loans in addition to the principal, and are winding down their most profitable units to raise cash. Also, I'm sure their "best year" was the year that MBS they insured did best in, too. Add to that their reputation for book-cooking, restatement of earnings and management troubles, and one could scratch his head... "Hmm, what could possibly go wrong?"
Get with the program, man. We're on the cusp of the greatest Recovery since WW2 and you're nattering about cooked books and accounting regs. That's all ANCIENT HISTORY. Fast Money says AIG is a sure thing. Plenty of no-risk up-room, to go! Maria plans to put her kids through college on this one !
Gov't is not in the business of owning stocks. I wonder how they are going to get out of their warrant position. Do they convert them and do secondaries? They can't let them publicly trade, because they would only get fair value to vol traders who would delta hedge them. We all know what the borrow is like now. I bet they don't sit on this too long though. European govt's would hold, but here I don't really ever remember gov't having this kind of stake in a 'public' company.
What do you suggest he govt. do when Vampire Capitalists engorge themselves to the point where they put the entire nations economic health in jeopardy?
I don't watch Fast Money. Or Mad Money, for that matter. Or take seriously anything on FBN. Call me grumpy, if you'd like. I see myself as a realist. AIG lost $61B in Q4 2008. That's billions with a B. No downside risk, huh? That's history not so ancient. Is it just me or has everyone lost their minds??? Recovery? Take away the Fed's shenanigans, and there's no recovery. All that's happened is a massive flood of liquidity from the printing press, as well as protectionist bailouts of select sectors. You can fool some people all the time, or everyone some of time - can't do that to everyone all the time. Just wait for the Bloomberg's case ruling to uncover the full scale of this BS. Also, it appears the audit of this corrupt and vile organization is going to go through, what with bipartisan support in the Congress. AIG's common stock is worthless. Good for some daytrading with tight trailing stops, maybe. As for Maria... well, this is a subject for another thread. :eek:
i don't pay attention to this stock so this might be a dumb question. why do you guys say it's back to old levels? when i pull up the chart in yahoo, old levels is around $1,500 per share. the shares are currently less than $100 per share.