AIG price never been in to $1000 range. You guy keep thinking about 20:1 reverse split. That was after they issued 80% company to US. Before the melt down AIG had 2.5 Billion share. Now about 1.5 Billion share. Forget about what happened between.
Not in our time, I guess - it could only go to 1000 with a LOT of buybacks.
Just from curiosity I did the following calculations:
Assuming 50 US$ starting point and 10% average yearly gain through buybacks : 2045.
Assuming 50 US$ starting point and 8% average yearly gain through buybacks : 2052.
Assuming 66 US$ starting point (book value) and 10% average yearly gain through buybacks : 2042.
Assuming trading AIG at 1,5 book value and yearly 10% again: 2037.
But if the latter would come true - AIG would be worth 218 US$ in 2021 - enough for everybody here :-)
At the end, just for fun: AIG gains an average of 10% till 2021 (132US$ book value), then goes to 4 times book value like in former times : 2027 before reaching 1000 US$.
But if we have seen in the past, we cannot even predict one year correctly so how 20+ :-)
AIG announced a dividend and $1 billion stock buyback. If they continued this and increased it every year and if AIG was trading at 1.5 book value, how long would it take for AIG to double to $100, then triple to $150?
That is the correct point. It is cheap now.and very cheap now. This can become a legacy stock in a buy and hold portfolio when the stock trades above book and grows earnings in the teens every year and grows dividends 10% a year and continues modest buybacks. Then whatever the price is I will be satisfied. When it looks like that can not happen I will sell and pay a very large capital gain but it will be long term .
not very a long time, but it could be worth $70 or so. They issued massive amounts of shares. moving to $1000 a share would be a market cap well over a trillion dollars, doubt you'll see it anytime soon