No, AIG never had a market cap higher than $250 billion. The 1:20 wasn't a straight split when you consider government ownership and other caveats. AIG currently trades at around 1/3 of its peak value in the early 2000s, and many assets have been sold off since then.
With this said, AIG used to trade at a minimum of 1.6x book for a twenty year stretch from the 1980s to 2007. Today it trades at 75% of book so it is very cheap on that historical basis. If we ever see interest rates on treasuries back up to levels seen between the 80s to early 2000s I expect we will see AIG significantly above book value, as the insurance float will do much better in that type of enviroment considering the current AIGs risk aversion. My two cents.
If yes, you should buy LHHMQ. Lehman Bros cumulative preferred shares. They are currently worth $35 due to accumulated dividends and face value, yet trade at 50 cents. Lehman just announce the following today:
August 28, 2014 8:10 AM EDT NEW YORK--(BUSINESS WIRE)-- Lehman Brothers Holdings Inc. (“Lehman”) announced today that it intends to explore monetization opportunities related to certain remaining allowed general unsecured claims against Lehman Brothers Inc. held by Lehman and certain of its controlled affiliates. There is no assurance that Lehman will proceed with any such opportunities. Lehman is represented in its chapter 11 cases by Weil, Gotshal & Manges LLP.
Folks, if you want to own something that literally could increase 50x overnight, you need to buy these CTs and just wait. Lehman still has tens of billions of assets and those who own CTs are entitled to these assets.
Go to investorshub and search for the following board to read more:
"Lehman Bros - Cap. Trust VI - Pref''''d Series "N" (LEHNQ)"
By all accounts and everything I've read about him over the last few years that I've owned AIG stock, he seems like an upstanding guy. To hear that he has a year to live is troubling to say the least. Hopefully 1 year turns out to be 5 years and he can enjoy the rest of his life. He has left behind an incredible legacy in terms of what he was able to accomplish during his few years at AIG.
Hmm....but if you understand what the shares are actually worth (around $35)....and you understand that upcoming court cases will get shareholders paid off and their shares will be retired (in coming months), then you will not worry so much about paying 50 cents instead of 45 cents because you see the "big picture". Just saying.
Please look up the above ticker and then search investors hub for the Lehman preferred shares board. People who buy LHHMQ are going to get very rich very soon. It will be a bigger payday than if you bought the FNMA preferreds in 2013 and held to now.
I am very long CAZFF, but my concern is how come the market isn't recognizing this massive apparent undervaluation? Does the debt scare investors off? Do people closer to CAZFF know something we don't?
Not trying to be a downer here, but just wondering why this stock is not in a significant uptrend right now. We should be rallying hard right now just based on the quarterly numbers alone in my opinion.
I'm not worried about a $300M Life Insurer acquisition...If you said they were spending $2B to acquire some hedge fund's derivative portfolio then I think there would be reason to raise an alarm. I'm all for AIG acquiring any insurer who underwrites profitably.
Now the CEO is saying at least 2 new partnerships with utilities in coming months.
companies in coming months."
(Reuters) - American International Group Inc (AIG.N) reported a better-than-expected 12.5 percent rise in quarterly profit, helped by strong performance across all its key businesses, and the insurer said it would expand its buyback program by $2 billion
Bob, I own Sberbank in Russia and consider it to be a very cheap bank considering it earns 20% ROE and 2% ROA. Can you share with us any other cheap names that you like out of Russia?
Okay great.....go take a look at AAPL's chart from 2009-2012 and count how much money it would have cost you if you wait for the RSI to hit 30. Or any breakout stock for that matter.