Should I buy AIG share now?
in word.
no.
details:
aig has $1 trillion balance sheet , usg (treasury) bought 80% or $800 billion of current aig assets $85 billion short term loan plus interest. now, don't know if assets still worth $800b. take deal. think gov got deal long aig not go bk.
, in bk, assume in deal terms gov becomes "senior creditor." smart thing negotiate in deal.
now, shareholders.
fnm/fre, common stock shareholders might wiped out. based on trading of aig stock today (interday dn 45%, 09-17-08), prospects aigs stock doesn't hot.
had been put buying on aig , trades 100 near 300% gain. for roll of dice, yesterday before close, former aig founder hinted (on cnbc-tv) looking @ investment group buy aig. bought small call option position (using of previous profits put buying), , today, since news has yet come true, , may not now, did not play out well.
so, if want speculate long on aig @ point, use options know risk upfront.
should buy aig share now?
Business & Finance Investing Next
Comments
Post a Comment