AIG
...because it is so large, no activist investor can come into the company and/or restructure and down size the company to liquidate some of those 'alleged' assets.
Activist investors seem to be in the company urging the company to do just that. AIG is so big and diverse, I have to presume there are opportunities there -- unless everything is so tied together and risked with options/derivatives. The problem seems to be those legacy assets which make up about 25% of AIG's capital, if I understand it correctly.
Sometimes it is easier to move on to something else that provides more certainty as to the value of the 'owned' assets.
That's true, and maybe the case here. Otoh, sometimes it's very profitable to go into a downtrodden stock when it's uncertain as to what the ramifications of its problems are, or not having knowledge that all the problems are even known. And when no one likes the stock because it's tough to understand or believe in the balance sheet or future of the company.
AIG is a big company, making profits and trying to improve its performance.
Stock is cheap here (imo), and if bought and held for a couple of years, increased share price should be a result. jmo. Otoh again, I'm very diverse and can risk it. If an individual investor only wants to hold a small number of securities, watch them closely, and,or hold them under a microscope, then for them AIG is not now and may never be a stock for them. Again, jmo. |
