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

To: Madharry who wrote (42812)	5/25/2011 9:51:05 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78742

>>i wonder how long they will manage to keep it above the offering price.<< Looks like the high of the day was 28.75$, the magic number for the treasury to break even. So, the answer to your question is 0sec. AIG is interesting imo, trading at a little more than 50% tangible book, so there is a decent buffer. There are issues with the reserves for the property insurance parts plus ongoing legacy issues that probably fade away over time. You would thing however, that management has a strong incentive to start out with clean books, they don't really have any incentive to hide losses. Government may have an incentive to hide losses and float the turkey again, now that it's not systemically important any more but I think Benmosche is a strong enough personality to resist pressure. With so many other cheap insurance companies out there, I'll take a pass for know, but I'll watch the stock for an entry.