ok now that was a steep drop...from 2.20 to 2.06
post #1721 of 4771
11/3/08 at 7:36pm
Now I am not sure about when they'll release the earnings report. Can someone find it out?
The two scenarios I posted earlier, I am changing my bets... It is going to be the scenario 2 (my guess).
Someone is bidding price up to GET OUT!
When you have a move... no rumors or news.... someone is manipulating the stock to get someone OUT of their position.
USUALLY! We have seen this before... it is still a bear market with most rallys sellling off by the end of the day.
My sense is a big player wants to get out in a hurry and is covering
The drop to $1.35 was a combination of a number of things, not just that they are using the cash they got, but just about EVERYTHING dropped at the same time as well.
Think about it, do you really think that people thought they gave Billions of dollars to AIG so that they could just put it in the bank?
The cash was given / loaned to them to help them get back on track. I actually think it's better that they used it when they did, to stop whatever 'bleeding' they could, rather than to let things continue to get worse and have to use the same money later.
I'm glad they used it now, along with everything else that happened with the markets, so that the stock price dropped when it did. Now that the company is working to get things back on track, we should start to see the stock price of this really go back up again.
AIG is HUGE, and it's going to take them some time to turn this around and 'fix' the losses, but remember, they are still an Insurance company, so the cash is still flowing in.
It's just in better hands now with new management. They way I look at it is, the Government didn't give them this money, and ask Liddy to help to 'fix' and turn things around for nothing.
It's just not going to happen overnight, but look at it this way, it's given allot of us a great opportunity to get in on a company cheap, that not just a year ago was at $70 a share.
Will the 3Q news be positive? I can't think of a single person in their right mind that is going to think it will be 'positive' as people already know the state of things, but I see the potential negative 3Q news as a chance for them to come in and state "yep, we've had some issues here, but were starting to get things on track".
Just my .02 cents...