AIG: Ready to Rally?

American International Group, Inc. (AIG) could very well rally above $2 this week. May options show the $2 calls are currently trading at $0.14 and Jun $2 calls trading at $0.29. AIG chart technicals are showing very bullish money flow with the macd indicator on the 1 month chart giving a buy signal.

AIG is expected to post a first-quarter loss on Thursday. A source that has declined to be named says the loss in the first quarter is expected to be significantly lower than its fourth-quarter loss of $61.7 billion, adding that AIG will not need a capital injection from the U.S. government.

The earnings whisper has an 81% chance that AIG will beat estimates. Now would be the time to consider buying AIG as a new uptrend is starting.

Disclosure: Long AIG with $1.50 stop loss.

Comments

[chazzster:]

While various blogs have AIG dead and buired, recent trending is for
trading in a moderate penny stock range regardless of the street
talk or daily news summary of disasters. If you've plenty of money to gamble, AIG could make you wish you did (gamble) rather than
invest in a company that lost more than all auto companies combined
in all nations in the history of the planet. Dump it now.

May 06 09:21 AM

[Duude:]

AIG is still dead in the long run. Asset sales will hardly cover government debt when everything is done. Additionally, I just got a notice from my auto insurance company 21st century that their parent, AIG just sold them to Farmer's Insurance which is owned by parent Zurich Financial Services. I wonder whether they will keep to the 21st century model or raise my rates to Farmers' Insurance rates?

May 06 10:23 AM

[Obi-Wan:]

Investing in AIG goes WAYYYYY beyond speculation...... :)

May 07 01:31 PM

[tunaman4u2:]

Its very sad that a company so incredibly destructive to America would not only have no punishment but be allowed to thrive in the future. Amazing

May 07 03:05 PM

[Harry Tuttle:]

I hear there is a portfolio manager who has had very steady returns even including most of 2008. I only have data through November, but one could assume that a track record that stable during for 20 years couldn't have change much in a few months. In addition, many of the best connected and most influential people in the World have invested with this guy for decades. Some people even invest their charities monies with him as well.

AIG!!, come on!

How about FNM on grounds that the real estate market cannot go down forever. Or GM at $1.61

Accounting should be mandatory by the 8th grade.

May 07 03:52 PM

[ifuwish2:]

AIG is a good buy now aand for the ones who think it is not wake up,,in a year you will see ,,you can not put money in a saving account and double it,,you will see with AIG the price will way over double in a year i BET,,so we see who right or wrong but JEREMY RICHARDS is right on,,

May 07 07:10 PM