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American International Group, Inc. Message Board

  • j0n_48195 j0n_48195 Jul 16, 2014 8:28 AM Flag

    6-7 cents on the dollar

    This is within the range I was quoting in an earlier thread. That's consistent with other settlements over the past few years. Those who were expecting $11B were, let's say, optimistic. Nevertheless, this is good news. It adds @ $.45/shr in cash, will save a few million more in legal costs and give AIG more focus on their core businesses. Gotta love that. One question: Does anybody know if AIG has already made any claims to this settlement on the balance sheet? (I don't think so, but...) Or does this half-buck flow directly to book value? (Let's hope.) Pre-market has been quiet so far, But I'm expecting the market will be kind to AIG today. Knock on wood.

    Sentiment: Buy

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    • I don't think the settlement was on the balance sheet, so it should be recorded with income in q2. I'm not an accountant but I don't think you can count expected legal income on your balance sheet, only costs. The street only seems to care about core earnings, so I don't think they'll care about this. But it seems to me that's more cash for buybacks in the future.

    • Nothing wrong with more cash in the coffers. And more to come $46 by fri

      Sentiment: Strong Buy

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