AIG (AIG): Q1 EPS of $1.65 vs. consensus expectations of $1.12. Core insurance operating income...


AIG (AIG): Q1 EPS of $1.65 vs. consensus expectations of $1.12. Core insurance operating income of $2.4B and book value per share of $57.68 vs. year-ago $44.33. Shares -2.6% AH. (PR)
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Comments (21)
  • DeepValueLover
    , contributor
    Comments (11175) | Send Message
     
    There is no logical reason why this stock is under $35.

     

    Look at these blowout earnings!
    3 May 2012, 04:09 PM Reply Like
  • billmichael
    , contributor
    Comments (141) | Send Message
     
    Not only is it good news, it's much better than expected. Well, we'll see, markets are funny, you know...
    3 May 2012, 04:15 PM Reply Like
  • NKP
    , contributor
    Comments (17) | Send Message
     
    Eventually, the market is a weighing machine. After hours trading on one stock on one day = irrelevant.
    3 May 2012, 04:19 PM Reply Like
  • Paul Price
    , contributor
    Comments (1514) | Send Message
     
    Nobody sane believes either the EPS or the book value numbers.

     

    AIG has been using precious cash in the worst possible way... buying back their own shares. It simply makes them weaker by comsuming the very capital they need to be solid enough to stay in business.

     

    Caveat Emptor.
    3 May 2012, 04:23 PM Reply Like
  • jeffreychood
    , contributor
    Comments (43) | Send Message
     
    Buying back shares is a great use of their excess dollars; I can think of a whole lot of "worse possible ways" to use their cash. Btw I think you generally have to believe AIG's numbers. They are 70% owned by the government and thus have been under intense scrutiny. I seriously doubt they are cooking their books in any significant way. Time will tell. As noted above, in the long run the stock market is a weighing machine . . .
    3 May 2012, 04:49 PM Reply Like
  • CapVandal
    , contributor
    Comments (798) | Send Message
     
    The beauty is you don't have to believe their numbers for this to be the stock of the year. Their core, recurring earnings could be $1/quarter and the value 75% of BV and it is still a $50/stock.

     

    Margin of safety and all.
    3 May 2012, 05:33 PM Reply Like
  • littleboymaker
    , contributor
    Comments (68) | Send Message
     
    As I understand it, they are buying back US Gov. owned shares. Elimination of the Fed ownership is a prerequisite to functioning without strings attached. The current CEO is doing an amazing job. They are moving back to their core business, which makes money.

     

    He is also old like me.
    3 May 2012, 05:07 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11175) | Send Message
     
    Buying back shares guarantees that the stock won't go down without serious p/e compression.

     

    There is no smarter move than buying $1 bills with 50¢ pieces.

     

    Especially if those $1 bills are increasing in value 11% per year but STILL only cost 50¢!
    3 May 2012, 07:12 PM Reply Like
  • Lugman
    , contributor
    Comments (6) | Send Message
     
    I am glad I bought before earnings report. It's against my rules, but got to break them sometimes I guess.

     

    But like bill said markets can be funny, I don't dare to guess what others expected (could anyone have expected a better result?). Tomorrow will tell.
    3 May 2012, 07:35 PM Reply Like
  • marcj11
    , contributor
    Comments (5) | Send Message
     
    Why are you happy? Even with those great earnings, the share plunged, no?
    4 May 2012, 03:48 AM Reply Like
  • Lugman
    , contributor
    Comments (6) | Send Message
     
    Yes it did, in the aftermarket. Logically thinking there's no way the share price would drop substantially today. Unfortunately people aren't logical.
    4 May 2012, 08:18 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11175) | Send Message
     
    1% down is "plunged"?
    4 May 2012, 08:50 AM Reply Like
  • marcj11
    , contributor
    Comments (5) | Send Message
     
    The price lost 1.6% Thursday, 4.4% in aftermarket, 0.7% Friday and finally 5% in aftermarket. In total, the stock lost approximately 11.2% and you are happy?

     

    Does anybody have an idea why this disaster happened when everybody is positive about this stock? I even saw an article saying that AIG will hit $100 next year?
    6 May 2012, 04:04 AM Reply Like
  • CapVandal
    , contributor
    Comments (798) | Send Message
     
    S&P down 2%. For all sorts of reasons, AIG's short term volatility is high.

     

    Friday AM implies that the public offering will be @ $32.

     

    AIG has atypical buyers and sellers driving the marginal price.

     

    Hardly a disaster.
    6 May 2012, 09:31 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11175) | Send Message
     
    Since I bought around $20...yeah I am VERY happy.

     

    Also options and warrants make my entry point even lower...@ less than HALF TBV!

     

    VERY HAPPY!

     

    This baby is a cash generating machine that is only warming up.

     

    $21 is 1% of AIG's all-time high.

     

    Repeating:

     

    A PRICE OF TWENTY-ONE DOLLARS PER SHARE IS JUST A MERE 1% OF AIG'S ALL TIME HIGH!!!!!

     

    AIG DID NOT eliminate 99% of its peak earnings power by shedding businesses during the crisis.

     

    Like I wrote before, only an asteroid strike, a 9.0 earthquake in Los Angeles or nuclear war could deter the earnings power of this monster.
    6 May 2012, 02:02 PM Reply Like
  • jeffreychood
    , contributor
    Comments (43) | Send Message
     
    Actually, as an AIG investor who also has quite a few shares, and knowing that AIG will be buying back its own stock over the next year or two, I hope that the stock price LANGUISHES during that period, so AIG can buy the stock back at a cheaper price. This scenario is better for long term investors. So yes as an AIG shareholder I am very happy when the stock price goes down; when AIG buys back its own shares at a cheaper price, all AIG shareholders benefit.
    7 May 2012, 06:36 PM Reply Like
  • robbieboggie
    , contributor
    Comments (347) | Send Message
     
    BUY ALL YOU CAN!!!
    3 May 2012, 07:41 PM Reply Like
  • gilgi
    , contributor
    Comments (18) | Send Message
     
    for all the reasons you guys mentioned...I am LONG!
    3 May 2012, 09:05 PM Reply Like
  • John Jeckle
    , contributor
    Comments (27) | Send Message
     
    Seriously though, why is this stock down 4.5% on an earnings beat? This is critical information to have before buying the stock.
    4 May 2012, 01:28 PM Reply Like
  • robbieboggie
    , contributor
    Comments (347) | Send Message
     
    Seriously is there any correlation with earnings and stock prices? Yes there is a random correlation. Government selling some shares... the sooner they get out the sooner it will reach the true value. Every time it dips you buy the stock, or pile in with options. If you are afraid well... then you should have been afraid when it was trading like above 2,000 or Facebook being suckered at 99x earnings.
    6 May 2012, 03:37 PM Reply Like
  • littleboymaker
    , contributor
    Comments (68) | Send Message
     
    Feds unloaded $5 Billion of stock, $2 billion bought by AIG......deal happened this weekend or something. Some people obviously knew about it. Guess we're not insiders!
    8 May 2012, 12:11 AM Reply Like
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