Shorts certainly are squirming. But I find it hard to attribute the entire rise to the squeeze. I'm only seeing 16% short interest at end of July. (That's huge, sure, but not as significant relative to the new volume levels.) There could have been a rush to short in early August, but I don't think so.
I think the majority of this move is due to genuine interest in an important company coming back from the dead. Anybody stupid enough to short when the stock hit $.60 (old valuation) post R/S deserves what they get. The big players have moved in to take it up -- and that should comfort every AIG shareholder.
This is, indeed, the big one. But it's not just a 'short squeeze.' I think 3Q earnings will justify the pps. New CEO has a great reputation in this business. PPS will only today recover to pre-R/S levels, and the future looks a lot better now than it did in June.
Yes, my friends, AIG is back.
Good luck to all, and if you're short, you need to get out of the way.
Thanks flying. It has been difficult to retrieve book value on AIG, can you provide any sources? The one article on Fox stated the Q earnings are expected $1.31/sh and a possible 55% increase in book value due to loss reversals. If the $28 bv is accurate bv can jump $15/sh.
I have a grid on a piece of paper. On this grid I have my shares divided into five blocks, lined up for sale. On the fourth block, I have my target price ($40). On the first block, I have yesterday's close ($22). Then, I split the differences to get prices for each block, with a $45.5 in my fifth block.
If that brief explanation makes any sense, you can see that I now have a plan for selling. I have a few options contracts, as well, but that will be a slightly different overlay.
This is what keeps me from pulling my hair out and it also really helps with rational decision-making. Instead of playing all or none. I get to play the middle, minimizing risk.