AIG Stock Price Outlook?
After hours trading is down 30% to 2.60/share. The govt. will own most of AIG which means that the shareholders get the shaft. The fact that they needed a bailout indicates where their at fundamentally. People that trade on the market on a regular basis will not be going long on this stock. The other issue is that the “shorts” and the “naked shorts” have and will continue to tear this stock down to nothing. The bears are in control of AIG. The stock price is headed down. If something miraculous happens in the next year or 2 and the profits that they bring in can pay down some of their debt, it may have the potential to get back on track. Profits that are generated are going to go straight to the government for now.
Still a lot of assets an paper and it’s a huge player in the industry. After hours price is around $2.80 per share…I’d either buy calls or the stock outright. Even Meryl Lynch got bought at 70% premium by Bank of America, so if the worst case scenario happens and someone buys AIG to save it, you should still get a decent return. I think it will be going up to around $15.00 a share within a few weeks if not sooner. This should be the low point…any lower and you have a bankruptcy…which the government obviously didn’t let happen…Counterpoint anyone?
