Following the govt. sale of shares there will be approx. 2.3 Billion shares of AIG common stock. Given the current price of approx. $48. per share this would give you a market capitalization of approx. $110 Billion. The current market Capitalization of the following 3 companies PRU, AFL and MET combined is about $96 Billion. Does anyone really think that what will be left of AIG will be worth more than these 3 companies, I THINK NOT! But if you can show me where I am wrong it would be greatly appreciated. Then I might consider buyng this stock at current price level. Any intelligent answers would be appreciated.
Either way the Govt will get their money back, they will either do it it through massive sale of preffered stock causing share prices to fall probably back to low to mid fourties short term. Or worst case they will break up the remaining AIG companies and sell the parts to the highest bidder, thus wiping out current shareholders as they did with GM. AIG is no longer to big to fail, giving the US Govt this as a real option. Be very careful if you own this stock, the short term hazards are very real.
buyers here are walking into a loaded government dillution landmine The issuance of AIG Common Stock in connection with the exchange for the Series C Preferred Stock, the Series E Preferred Stock and the Series F Preferred Stock will significantly affect the determination of net income attributable to common shareholders and the weighted average shares outstanding, both of which are used to compute earnings per share.
held by the Treasury Department will be exchanged for 924,546,133 shares of AIG Common
the goivernment dillution plus the sec filing shows that AIG has 2 planned seconday offerings within 2011 theres no way this stock price will hold 40 much less 30 in the coming months..i just hope people heed the warning signs and do not invest long here as more heartache is on the way...
The Fed still has the AIG 'bad stuff' hidden in Maiden Lane II and III...waiting to dump it on the taxpayers on some dark night. One day AIG will be 'clean' and the federal deficit will mysteriously increase a couple hundred billion (a rounding error at the rate that the government debt bubble is growing).
actually, the FED has a decent profit on the Maidens. Remember, they "paid"--for the assets that went in there--at the bottom of the market. Since then, most of those assets continue to "perform", i.e., receive payments. Thus their market value has increased.
The figures, including cost basis, $$$ taken out by FED, and current market value of assets, is available at FED website and other places.
We should also all remember that the key driver pre 2008 for AIG's tremendous rise is stock price and market capitilization was their financail products division, which has since been shredded and now provides little if anything to AIG's bottom line. So where is the money actually going to come from to support a company with a 100 Billion+ market cap, It just does not add up, please somebody show me where I am wrong.
You do understand that before the financial crisis this this was trading at 20x its current valuation. That means this company was worth $700 billion in 2007. So... do you not think it deserves to trade at $100 billion which would be a mere fraction of its pre-crisis market cap? I did not double check your math about market cap being $110 billion when including government shares. But I thought this would be more than $110 billion.
so in your opinion Aig had a market capitilization of 700 Billion, this just shows the kind of inteligence on this board, the largest market cap company in the US is exxon at $365 Billion and is a company which makes real profits which dwarf anything AIG will ever report, but keep smoking that crack and dreaming your dream.
According to the recap. plan, after the restructuring, there will be 200 mm common shares outstanding, not 2.3 B. Implies market cap of $10 billion, not $100 mm -- thus the value proposition.
Not to many intelligent anwsers as per usual. Got to like the one where there will only be 200 million common shares. This company is way overpriced compared to its peers, this stock price will have to come down, way down. The longer this bubble persists the harder the fall. If you like playing russian roulette with your money this is the stock to own.
LOL, the market is buying bcuz some guy bought AIG. if that dude is smart he should have bought the lots the govt is selling at a step discount.
He just wasted several million. TY for the short
35 billion mkt cap add in govt 92 percent you have the largest market cap in the world. Hard to see how it's worth more than exxon, google etc. In its hey day it was in the top 20 not the top now its half the company
before AIG move to $48( due to gov sell shares) it was $40
according to the shares increased ( dilution) AIG should be in $15 after gov sell shares. why AIG still $48 ?
I only can see AIG have low cash reserved and huge debt why GOV want to get out ?
the OBAMA want to run away from AIG before Julian released bad news ?
but anyway AIG will be loose couple dollas in couple days
What are you talking about with the government get out. People make up your mind...do you want the government in the business of holding stocks or not?? Although we (the taxpayers) did make a nice profit off that C deal...man that idiot didn't know what he was doing...LOL.