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American International Group, Inc. Message Board

  • moubied65 moubied65 May 31, 2011 9:01 PM Flag

    Is it time to buy yet?

    This poor thing has been down more than 50% for the past 5 month even when the market up almost % 10.
    It is less than 60 % of the book value, if it drops any further the government will start losing money. I owned Citi and while the government was selling their shares Citi stayed up around $5 while it is almost 4 now and that before reverse split. Please advise on whether to buy or wait a pit longer.

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    • really?its you who is silli,arguing about things yo dont know or own,so who is silli the guy who owns a lot of aig and knows alot about aig or assss like you with no position in aig,and no knowlege of things going on with aig and overall.who is kiddio?

    • Does anyone know how to polish a turd?

    • Book value, book value, book value. That appears to be the only thing AIG investors are able to hang their hats on. Let me tell you something about AIG's book value. It's primarily based on two things.
      1) The preferred shares that Uncle Sam converted to common shares due to AIG's inability to pay any of the interest and the absolute certainty that there was no way they could ever pay back the principal.
      2) AIG's loss reserving practices. AIG has under-priced their business for so long that they've had to under-reserve their losses or publish absolutely terrible results. This is evidenced by the FACT that while nearly all their competitors have recently reduced old reserves and thereby padded their results, AIG was forced to INCREASE old reserves by several billions in each of the past two years. A practice I'm sure will continue as their pricing practices have severely deteriorated since the policies which insured the old losses.

      To trust their current book value is crazy. Remember these are the same people found guilty of cooking their books with the Gen Re finite reinsurance deal in the early 2000's. How far will they go to make their numbers look better than they are?

54.44-0.35(-0.64%)Jul 29 4:00 PMEDT