On the plus side, when the common takes a dive, as it did today, that banked good will in a thin market often protects us warrant holders from the worst of it. Still, I'd rather see the common up. Oh well. Better luck in 2015. I'm grateful for what we've seen so far, but know the best is yet to come.
They often get out of sync. Since the time value on the $45 strike fluctuates between $2 and $2.50 per year, that half-buck difference over the remaining 6 years on the warrants implies $3 wiggle room. We're about in the middle of that range now. Add to that the thin market for the warrants and the stabilizing effect of the buybacks on the common and some divergence is bound to happen. But eventually gravity does assert itself. Cheer whenever the common rises. The warrants (where my money is) cannot defy that trend for long.
Mr. Benmosche fails to make his case and produce the real facts during the Bloomberg propaganda interview with Betty Liu sponsored by AIG. CAPITALISM should never be defined by the $182 billion bailout / AIG bankruptcy. Likewise, the extortion and fleecing of US Taxpayers by Hank Paulson, the former bankster from Goldman Sachs and Tim Geithner (credibility problems) does not make Free Markets work.
1) Sunday May 17, 2009 - Times of London stated, Joseph Cassano: the man with the trillion-dollar price on his head. “This was one of the greatest bailouts in history, after the biggest corporate loss in history, during the most serious challenge to world stability since the 1962 Cuban missile crisis. And here was AIG, the recipient of so much taxpayers’ money that the checks exceed the value of the gold reserves in Fort Knox, paying bonuses to the very people who engineered the catastrophe.”
2) Let us not forget former CEO Maurice Greenberg who hired AIG’s bad boy Cassano, severance recipient of over $300 million for this major plunder. You know, the same plutocrat Greenberg of Starr International who was forced to pay $1.6 billion restitution to the DOJ for fraud and accounting irregularities while CEO at AIG.
3) Now the real cancer; Benmosche states at press conference following his appointment as AIG’s new CEO, “I will definitely be consulting with MR. Greenberg as how I should run the company (AIG).” Gee, how many CEOs has AIG had since 2008?
4) The US taxpayers owned AIG. AIG was forced to payback in full by 2012 as were the bailout terms (5 years) or be in default. AIG is not one of the good guys. More misleading statements made by Ex-CEO Benmosche, stroking his ego and attempting to repair a rightfully tarnished insurance company.
5) AIG should have been yesterday’s toast. AIG and Benmosche owe a big THANK YOU to US Taxpayers, not the other way around.
The rumor is Mr. Benmosche resigned because he suffers with dementia.
Sentiment: Strong Sell
I wouldn't exactly say sideways because it has made 2 or 3 new highs over the past few weeks. Granted this thing ain't shooting through the roof, but certainly it certainly has been stable. If you want some excitement, you can always buy a nice mid-cap oil like APA (100+ in mid-September), now just under 63. That's a candidate for an oil change,, so to speak :).
I have a son with schizophrenia. I love him, but don't think you want to be that guy.
Good idea. I would like to be in Belize right now and I would have a double umbrella in mine. Good luck, While I missed my target I still believe it is worth 75 minimum and I know someone will pay us that if they maintain the performance trajectory. Smarter guys than me who own a lot say it is worth as much as a 100. I am not a hog though. . Come to Redondo Beach and I will buy you a very good craft beer tasting anytime.Happy New Year. We definitely will beat any AAA corporate bond and with the same of or lack of stress. lol.
Sentiment: Strong Buy
Nobody can predict the market. All you can do is estimate value. By our math AIG is undervalued. We may both me wrong. God knows the market thinks so. But someday I hope to be sitting on a beach again in Belize. I'll buy you a sweet rum cocktail with an umbrella in it and we'll drink to AIG. Here's to 2015 in the meantime.
Bit more risk with more potential upside. If you believe in 5-7 years out them getting everything in line then its a great bet. And you should hold throughout.
OK. I am still bullish as the company performance gets better and better. Still living down the smack. I am OK with that. Up nearly 70% since I have been here and it has headroom.
Hey, You seem more confused than hostile. In your perverse way you seem to be trying to get into somebody's head So here's an crazy idea: Why don't you just try "being normal" for a change? No matter how smart/ stupid, lucky/unlucky we are, we're all just trying to get ahead. I'm considered smart by those who know me, but I don't really know what that means. Success in investing seems to have little to do with horse-power intelligence. I have no special training in accounting, or the "front office". I've done better than most, but learned a lot more losing money than making it, (which makes it worth the bother). I'd have a couple more zeros attached to my net worth, if I could take back just a few of my worst mistakes. I'm beyond giving a damn what others think, particularly on this board. So why don't you start trying to learn instead of sniping and "stirring the pot"? Making money for bragging rights isn't worth it. The mysterious organisms that business and the economy are is.
You are very nice, and besides you are deleting all your earlier posts. Was it due to Kmart clearance sale? LOL
Sentiment: Strong Buy