Discussion in 'Stocks' started by JAP, Sep 21, 2009.
Why?... this is worthless, toxic trash.
The mother of all short squeezes perhaps?
because it's perceived to be a government owned company that the gumbit will not let fail. Plus, AIG proposed that the gov't reduce the interest rate on the money they "borrowed" and lengthen the term of the loan. They'll prob. get it too.
up on talk of Greenberg coming on board to help fix things/rework the deal they made with the Devil...err, the gov't, and GAO report that AIG is stabilizing.
Former AIG boss thinks government should reduce ownership to 20%.
That's bullshit, we need to put such shameless person to jail. Although I would like to cut him to pieces.
$100B? $200B tax payers money
So much for living up to your handle...
Probably. AIG is one of those "casino stocks" brought about by the joys of government intervention. Nobody knows how much the government is going to steal from working folks and hand over to AIG shareholders. The stock could be worth literally anything from zero to $100+. Nobody knows, and nobody really can know because the government's actions are unpredictable. So it's a magnet for gamblers, speculators, and high-frequency front-running.
You have to be insane to hold AIG, FNM, FRE, C, BAC etc. overnight. Long or short.
Anytime traders know they can't make money on less volatile stocks they usually jump on board something more volatile like AIG, WAMUQ, and LEHMQ that's why generally they outperform on days the market does bad and do bad on days the general market does good.
The behavior is quite simple, if people can't make money, the find other stocks to make money off of.
I think it is a safe assumption that AIG is worthless, so there are enough shorts in it that it makes a good squeeze play on any news. To think that the government is just going to forgive the bulk of the loan or sell most of the stock so this POS can survive is scary. This company does not deserve to survive. It is a good trading stock, but I cannot imagine anyone holding this stock overnight after the big move today and based on its financial condition. It does make for a good trade and the after hours action sets up for a gap up. IMO it is just a game of chicken on this stock at the moment.
The government is going to have NO equity stake because the warrants are collateral and are going to be a tear-up. Wall St analysts are not experienced in distressed companies. This company will have a well positive book value and is going to $4-5 on the old stock. Thats $100 on post split. Do you really think this is short covering every day? its distressed players making a fortune from the fools that are willing to sell it to them, long or short.
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