Another downgrade on AIG

Discussion in 'Stocks' started by ASusilovic, Sep 11, 2009.

  1. In other news regarding AIG, analysts at Wells Fargo downgraded its rating to underperform, saying the current premium at which AIG shares are trading isn't justified.

    ""Typically, premiums to book value are reserved for insurance companies that are earning in excess of their cost of capital," Wells Fargo said. " It doesn't take much math for us to see AIG is not among that group."

    Moreover, "a reasonable case could be made that the company has virtually no tangible book value at the moment," the analysts said in arguing that AIG shares deserve to be deeply discounted.


    http://www.marketwatch.com/story/ex-aig-exec-cassano-may-face-us-charges-wsj-2009-09-11

    Where have been these calls 3-4 weeks ago ?LOL !