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8 pts

Opinion on American International Group Inc. (AIG) Sector: Financial > Industry: Insurance (Prop. & Casualty)
Enough cash in the till?

Feb 11, 2008 09:58 PM UTC

Walter Thatcher

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+6.24%	MED

Sr. Associate

Profile & Performance

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This pick is about: AIG

Rating:	$44.97 (02/11/08)
Closed:	08/30/2008 @ $22.2 (+50.63% in 201 days)

Citi seems to think not. The stock has hit a 10-year low. I like their strategy of closing noncore business and expanding overseas, but I still don't know if this is the end of the cash crunch for them. I"m going to keep a sell rating on the stock until I think that it can't get any worse. At that time, I might upgrade. AIG is a still a great, world-class company, that might be a decent value pick down the road. I'll take a serious look if it starts trading under book value.

Update 06/12:

Will Sullivan get the boot?

Major investors like Bill Miller and Eli Broad want him gone .

Update 08/07:

More losses

The world's largest insurer lost more than $5 billion in the second quarter, as its credit default swaps portfolio and other investments lost value.