Wells Fargo downgrade is a market manipulation ploy. AIG is sitting on a boatload of cash. Benmoche has already said they want to initiated a 10B buy back program and a dividend this year, hopefully in that order. Either one of those announcements will send the PPS soaring.
I recall an analyst quoting that $10B buyback figure, but not Benmoche himself. Do you have a link for that? WFC is either on to something or blowing smoke. I for one would think anything short of a 100M share buyback disappointing. $10B would triple that and raise book value by another 15-20%. Let's hope.
typical comment from someone in major denial....
it is always"when aig will buy back,when the government will be out when this ,when that.."
in the meantime ,all those things have happened and aig still trades like a dog...
I'm with you delano. I just bought into AIG. High margin, high return on equity, 50% of book value, insiders buying it up, US government sold its shares. I think its a value play and a turnaround stock.
trade - i agree with you in that this has been a real dog as of late. I'm in at an average of $36.20 so right now and with each move down I continue my loosing streak, so I'm not defending our recent performance.
I do though believe that every stock has a threshold of pain that it can absorb, and every stock is different, before enough is enough and a break-out occurs. Just like some people can tolerate the cold more than others, those individuals have a higher threshold for colder temperatures, but you keep throwing snow and below freezing temperatures at them day after day, eventually they'll break.
I am disappointed to see that AIG can tolerate these levels with such positive news and current state, but eventually it's going to break and there will be a catalyst that will send us upward. I just don't see it happening until around the summer months, at least not something that will take us to mid-upper 40's.