Yesterday, I wrote about the AIG 1 for 20 reverse split. I am going to continue piling on AIG because I don’t want others to jump in and lose the 25% that I did in AIG shares. This is a dog. There are not assets to cover the debt to the government/taxpayer and some of the assets that they are selling off are assets that generate the meaningful earnings, revenue, and cash flow to the parent.

In my AIG 1 for 20 article yesterday, I said that I expected AIG to close around $18 for the day. They closed at $18.08 (there were above $20 when I wrote). I feel good about that one and would warn against some of the head fakes that will come in AIG.  There will be buying, but it is likely to come from ‘traders’ rather than investors.  If you want to take a financial flyer, I would recommend many other companies ahead of AIG.

AIG

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