AIG - American International Group Inc - Page 87

ok now that was a steep drop...from 2.20 to 2.06

Quick Hits: AIG Spending Like There's No Tomorrow
Scott Reeves Nov 03, 2008 1:45 pm

American International Group (AIG) has spent about $90 billion of the federal government's $143 billion rescue package, leading some to say it's not enough.

Critics say shareholders and taxpayers would have been better served by a bankruptcy filing, but the point of the bailout was to save the US financial system from collapse - not just to rescue AIG.

The situation is further complicated by by the company's top executives, who have squandered taxpayer money on trips to resorts and England, suggesting the company could benefit from some adult supervision.

AIG's quickly spent about $90 billion, suggesting that it grossly undervalued its obligations to others.

The Fed has twice added to the original $85 billion bailout, already the largest government bailout of a private company in the nation's history. In October, Uncle Sam gave AIG $38 billion more in credit for securities lending in an effort to keep the company from drawing down its first loan too quickly. Last week, the FED agreed to let AIG borrow $20 billion from a larger commercial paper bailout fund it had set up for institutions that lend money to each other.

Earlier this year, investors began making private demands that AIG pay off its billion-dollar guarantees. In mid-September, AIG said it didn't have enough cash to cover its obligations and the company has used the federal bailout money to post collateral demanded by other firms, The Washington Post reports.

Critics say no one else benefits from using the money this way and taxpayers may suffer a significant financial loss. The company may be forced to borrow additional federal money to cover future payouts to others.

The value of the company's mortgage assets is probably declining and that means it must pay a higher price for its guarantees. AIG also may be forced to sell more assets at low prices to raise cash quickly.

Taxpayers now hold about 80% of the company.

The unknown, and perhaps unknowable, part of the calculation: who else goes under if AIG fails?

The purpose of the Fed's bailout is to avoid answering that question.

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

NEW YORK, Nov 3 (Reuters) - Troubled insurer American International Group Inc said on Monday a director, Fred H. Langhammer, resigned last week, effective immediately.

AIG, in a filing with the U.S. Securities and Exchange Commission, stated no reason for Langhammer's sudden departure from the board.

(Reporting by Lilla Zuill) 4:57 pm November 3, 2008

http://www.briefing.com/GeneralConte...80807050000AIG

Thursday, November 06
After The Close Actual First Call Yr Ago Yr/Yr Rev
American Intl AIG
-0.90 1.44

(a) Excluding non-recurring items.
(b) Calculated using current exchange rate.
(c) May not be comparable to consensus.


Earnings release date and conference call information from Wall Street Horizon.

AIG

This stock might teeter for a bit but I think the end result is going to be a good one.

Once you get past the 'gloom and doom' news reports, it's clear to see that the company is starting to 'clean house'.

Thing is, a company the size of AIG can't do all it's housekeeping overnight without de-stabilizing the company further.

Once they get things in order, which I think has already 'started' to happen, this is going to be a good stock that is going to go back up high after a bit and hold strong.

Remember, they are still the largest Insurance company out there.

I like Insurance companies. It's a product that everyone needs, like it or not, and that sure can't 'hurt' things any.

Allstate and AIG are my top picks in that order for Insurance companies.

http://www.businesswire.com/portal/s...96&newsLang=en

Monday 11-10

bah, I was hoping tonight

2.42

Won't break 2.43...grrr

$2.49 It is getting pretty hard to guess what's going to happen, huh?
My bet is, $3.00 until Thursday, then Friday drops to $2.40 and Monday is a very difficult guess. It will either go back to $1.90 or up to $3.00 and then only God knows... I guess it is too late to jump in, now we'll have to wait the report.

here's only hoping $3 plus

You may be right!
It reached 2.49, but now it is stuck on 2.43

I don't think that much of the 'bad news' is really going to affect this much. When it's already at pretty much rock bottom, I think most already figure the bad new has been factored in.

I think this is just going to keep going up from here...!

I'm wondering if the election will affect this? I'm thinking about getting in now just to see it break 3.

It is not just the report!
Remember when the stock dropped to $1.35? It was a couple of weeks ago, when the media announced that AIG had spent 3/4 of the bailout... So how's their cashflow right now? Definatelly they'll have to ask the government for more money, what will happen to the stock prices when it occurs? On the other hand, if they sell some assets to make money, before they run out of cash, then the stock prices will sky rocket.
What do you all reackon?

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...

Great thoughts!
I personally believe 100% in this company and I am dying to buy some more shares (to average down), but I am trying to find the right moment to do so as I am a LT investor (3 to 5 years). My hopes are that it will drop again, so I could load some more, but how low could it go again and will it really go down again? That's why I am expecting the Q3 earnings.

Now? Realistically, I'd say $1.70. Or $0.01 if bad things start happening..

Hopefully the latter never occurs.

Do you really believe it will reach 1.70 again?
With the new president in place, the market will calm down and stocks will start a move up.