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Don't Bet the College Fund on AIG
Excerpt from the InvestorGuide.com Stock of the Day on 9/4/2009

One of the juicy stories during these lazy last few weeks of summer has been the transformation of (former) insurance giant AIG from the laughing stock of the financial world to the darling of the stock market. The stock went through an embarrassing 20 to 1 reverse split (to get it out of the penny stock neighborhood) in July and since then has more than doubled in value. AIG is still over 80% owned by the government and owes Uncle Sam $80 billion in loans. But the fact that investors are willing to take a chance on it is partly a result of typical investor behavior after a brutal bear market. For a lot of investors, a 10% gain on a stock is not going to even make a dent in the huge hits they have taken, instead they need spectacular gains to make their money back -- AIG is now being seen as an opportunity to do that. In other words, the stock has become more of a lottery ticket than an investment vehicle.

AIG started August at $13.72, currently it is trading at $40.83 and that is after a pullback over the last couple of days because at the end of August, the stock was changing hands north of $50. So what exactly is going on here? Here are the two oft-cited reasons for the recent bullishness. A) The market is very optimistic about the new CEO, Richard Benmosche, who took office just in early August. Benmosche has been at his boisterous best doing everything from calling out NY Attorney General Andrew Cuomo to proclaiming his independence from Washington and even halting AIG's asset selling spree. Traders have been encouraged by his moves because they believe he is not just a puppet of Washington but is focused on AIG's shareholders. He believes he can garner more value for AIG's assets by improving the businesses and holding out for higher offers. B) The market was encouraged by AIG's second quarter results which showed that the company earned a profit for the first time in six tries. It's impressive that a company which was rescued just about a year ago from the brink has started operating in the green so fast. More >


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AIG Profitable for First Time Since 2007
Excerpt from the InvestorGuide.com Stock of the Day on 8/7/2009

The day's most anticipated report was probably the jobs report, which impressively showed a significant slowing of layoffs. However, competing for the top headline is the news from AIG's quarterly earnings report. Analysts had been expecting American International Group (AIG) to post their first profit since 2007, which the company managed to do, but AIG went far beyond expectations. And yet despite all this, criticism is still coming from all directions. What are the major concerns still facing AIG, and is there any room for optimism? More >

AIG Possibly Nationalized?
Excerpt from the InvestorGuide.com Stock of the Day on 2/24/2009

AIG, the insurance giant that received federal bailouts in September, is probably looking to restructure its $150 billion rescue package again. This second round of restructuring would reduce the company's financial burdens and give US taxpayers more ownership of the insurance giant. If this occurs, it will be announced on Monday next week when AIG is scheduled to post their Q4 results. Analysts are expecting this to happen due to a possible net loss to exceed $60 billion, a figure that some say would force the company into Chapter 11 bankruptcy. If that occurs, then the government's bailout efforts will have been for naught. It is possible the government would be willing to provide more bailout funds to the company, increasing its stake from 80 percent to 100 percent. But at this point, are there any signs of hope for the company? More >

AIG Hopes to Stop the Bleeding
Excerpt from the InvestorGuide.com Stock of the Day on 9/11/2008

AIG has been one of many financials who have announced sell-offs this week in an attempt to boost liquidity, cut losses and improve credit. After three quarterly losses totaling $18.5 billion, AIG's Chief Executive Officer, Robert Willumstad, announced the company may sell its consumer finance and reinsurance units. AIG's stock is down over 70% on the year. Are these sells-offs enough to revive the health of insurance and investment giant? Will Willumstad be able to convince investors that there is an end in sight? More >

AIG Oust CEO, Instates Successor   6/16/2008

AIG Better Hope Those Write-Downs Stay Unrealized   5/14/2008

AIG Shares Rebound After Small Write Off Announced   12/5/2007

AIG Reportedly Close to a $1.5 bn settlement   1/13/2006

AIG files restated financials for 2000-2004   5/31/2005

Top-level Accounting Problems May Extend Beyond Ex-execs   5/10/2005

American International Group (AIG) Upgrades

Date
Analyst
Old Rating
New Rating
08/05/2008
UBS
Neutral
Buy
07/21/2008
Banc of America
Neutral
Buy
06/19/2008
Citi
Hold
Buy
06/19/2008
Citigroup
Hold
Buy
05/30/2008
Morgan Stanley
Equal Weight
Overweight
09/09/2005
AG Edwards
Buy
N/A

American International Group (AIG) Downgrades

Date
Analyst
Old Rating
New Rating
09/08/2009
Credit Suisse
Neutral
Underperform
09/24/2008
Fox-Pitt Kelton
Outperform
In-Line
09/15/2008
Citi
Buy
Hold
09/05/2008
Morgan Stanley
Overweight
Equal Weight
08/07/2008
Friedman Billings
Outperform
Market Perform
07/15/2008
Wachovia
Outperform
Market Perform

American International Group (AIG) New Coverage

Date
Analyst
Rating
08/06/2008
Societe General
Sell
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