TraderMark

AIG Is Dead, Long Live AIG

Good piece David

Unfortunately filled with pragmatic, fundamentally based commentary which is of little use for those in AIG or the markets right now as they daytrade their way to nirvana with government backstop.

I myself write very similar fundamentally based drivel so I'm glad to have you as a peer.

While Citigroup Jumps on John Paulson's Investment, AIG Jumps on Anything

This was the same thinking in 1999 NASDAQ
Those who left the Titantic at the right time and did not buy back in on the repeated invitations given in 2000 prospered
Mos of us (hand raised) were happy to get the invite at 20-30% lower in 2000 and were punished taking away many if not all of our gains from 1999.

But the government was not backstopping NASDAQ in 2000 so we'll see how this episode turns out. There is no precedent


On Aug 28 11:20 AM mikebrah wrote:

> But even if they are government backed, that doesn't make them a
> good investment. It just means they won't go to zero, right? It
> does NOT make them any more profitable so the buying spree still
> doesn't make sense.
>
> I've said this before, but simply NOT going bankrupt doesn't make
> these stocks a good investment. At some point people will realize
> they are paying virtually infinity PEs for these "zombies" and the
> silliness will stop. OK, so BAC is not going bankrupt. Fine. That
> fact alone doesn't make it worth $156B which is the current market
> price.
>
> Most "bull" arguments I read essentially come down to this: yeah,
> I know its all BS, but I don't want to miss it and I'll just get
> out before it gets bad!
>
> Not exactly what I would call sound.
>
> MM

81 Stocks Returning 35%+ in the Past Four Weeks

many of these stocks constantly chase out short sellers

people try to short stocks on fundamentals in a technically based market. Momentum feeds on itself

Until it doesnt - and then the bottoms fall out, and some of these stocks will hit major air pockets. But you have to survive to be around to see it !:)


On Aug 17 09:39 AM predictorman1000 wrote:

> You look at some of these names and the only comment you can make
> is WTF!?
>
> Even if you use the old standard that the market looks six months
> out, can anyone see improvement of many of these companie's businesses
> in that period? In even one year?
>
> Clothing? Paper? REITS? Hotels? Again WTF!?