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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (42504)	5/2/2011 5:57:11 PM
From: Madharry	Read Replies (2) \| Respond to of 78740

are you just buying because he's buying it or is this in addtion to some compelling reason you have to buy this ward of the state? I think silver is plummeting because of the increased margin requirements which certainly pushed out wannabes in the future market with a close to 10% decline today . the cme announced another margin increase in the late afternoon after two last week. I dont know who wins this battle but I think investment demand is still solid. It will be interesting to see what the demand will be for 2011 silver bullion coins.

To: Paul Senior who wrote (42504)	5/3/2011 12:22:15 AM
From: Spekulatius	Read Replies (2) \| Respond to of 78740

re AIG - the float is 135M shares and Fairholm bought 44M+ of that ( the remaining ~1.6B shares are with the government). Looks to me like Fairholm was solely responsible for the runup to 60$/share but what is his exit strategy? Sooner or later the government is going to sell it's shares, so there is quite some sales overhang. Unless AIG is ridiculously cheap, why would I want to buy now? AIG book value/share is about 47$ tangible , so it trades at 66% of book, which sounds OK unless you realize that you can buy insurance companies without AIG issues for ~75% tangible book. Considering the huge operating losses that AIG still incurs, that does not seem like a large enough discount to me, even if I don't consider the overhang from a government stock sale. I do think there is value in AIG and Ben Mosche does a good job preserving it. For me though, with those issues, i would like to see a larger discount to tangible book before jumping in - close to 50% seems OK as an entry point - that would be around 25$/share.

To: Paul Senior who wrote (42504)	5/3/2011 1:25:44 AM
From: Asymmetric	Respond to of 78740

Are AIG Shares a Bargain? April 4, 2011 As the global insurer regains its footing, its stock looks like a Buy based on valuation, argues Sandler O'Neill. American International Group (AIG) By Sandler O'Neill + Partners ($35.00, April 4, 2011) We are initiating coverage on shares of American International Group with a Buy rating and a price target of $42. American International Group's (ticker: AIG) valuation is attractive. AIG's shares are inexpensive at 8.3 times forward earnings compared to its peers at an average of 9.8 times. On a price-to-book value basis, the company's shares (which were at around $34 a share in midday trading Monday) are trading at 75% of most recently reported book value compared to its peers at an average of 110%.... online.barrons.com