and here On paper, AIG has a net saleable value of $82 billion -- equal to more than $30 a share -- Credit Suisse said in a research note on Tuesday.
The net figure assumes AIG will pay in excess of $30 billion to rid its balance sheet of thorny liabilities, including credit default swaps on mortgage-linked derivatives that triggered $18 billion in losses over the past three quarters.
Shares of AIG closed up 6 percent at $5 Tuesday on the New York Stock Exchange.
Still, analyst Tom Gallagher said investors face hurdles in being able to outmaneuver the government taking majority ownership. is another opinion
Credit Suisse believes their $3 target for AIG common equity still seems reasonable though more of a best case scenario for the equity value in their view. With pro-forma EPS likely $0.30 - 0.40, and pro-forma tangible book value in a $3 to $4 range, they would expect the stock to trade in a $1 to $4 range.
WRONG! Citigroup cut their AIG target to $4.50 (1x current tangible book) following the deal with the Fed - they noted that shareholders will be significantly diluted and AIG will have a low ROE moving forward so they do not expect that it can hold a value above BVPS.