BSCLossMan

Why I Bought AIG Last Week

AIG comment #2: I'm certainly an amateur, but I have one more qualification about buying any AIG stock, regardless of price. I am probably wrong, but I think the fed would be very leery about letting the shareholder revolt wrest control of AIG from them. $85B is a lot of money, but AIG has much more bad stuff on its books, and it's difficult for me to imagine a consortium of large shareholders raising enough capital to make the fed feel okay with letting them take control of the company. Even with asset sales, there might be many more extremely large write-downs at AIG and if the fed lets AIG go, they (the fed) might be in the same boat in the future, bailing out AIG again. $2.50 a share sounds cheap until it goes to 5 cents...I of course, don't know, but these are just my thoughts.

Why I Bought AIG Last Week

It's amazing how difficult it is to find answers on the internet to the most simple question about stocks. For example, I've not seen a single word about what would happen to those extra millions of shares of stock that would be issued by AIG in a fed takeover after the loan is paid? Are they put onto the market (thereby maintaining a massive dilution) or are they given back to AIG subsequently to be destroyed? (PS: I'm not sure what the law says about destroying stock that has been issued). The way I look at it, that's the most important question regarding AIG shares.

AIG: The Mark-to-Lehman Market

There's a good article on Forbes today about AIG. AIG has many assets it can sell, real assets, not voodoo securities.

Market Losing Patience with AIG

Hold on. I think AIG will triple from here in 3 years. The drop is primarily due ot shorting the stock. I'm not saying AIG doesn't have problems, but it's not like LEH or BSC or WM. It has tremendous assets and great businesses. While the fed is trying to stablize markets, the SEC made a terrible mistake allowing naked shorts. They should be stopped, period, for all stocks, and for all time.