NYSE:AIG
$23.06
(2/9 2:43PM)
+4.1%
| Open | $22.38 |
Mkt Cap | $3.0 Billion |
| High | $23.8 |
52Wk High | $55.90 |
| Low | $22.15 |
52Wk Low | $6.60 |
| Volume | 8.0 Million |
Avg Vol 10D | 7.1 Million |
A Word Of Caution
The Ockham Research Team has placed an alert on this security because there have been significant developments associated with American Intl Group, Inc. (AIG). Eventually, these externalities may have an impact on our valuation but these recent events have not yet been fully factored into our analysis.
Please take a moment to look at the RazorWire feed on the right hand side of the report. Each mention of American Intl Group, Inc. on business television or influential blogs will be displayed to the right of the report. This should help bring you up to speed on any major issues they are facing right now.
Of course, you may proceed to review our research report for this security, but please be aware that our model may not reflect these significant factors surrounding this company as our data sources are still being updated. This alert shall remain in effect until the situation surrounding this security normalizes substantially.
Therefore, (and as always), check additional sources and available information regarding AIG before making an investment decision.
Ockham's Rating/Recommendation Summary
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AIG Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, AIG the high and low end of the Price to Sales per share ratios are 1.85x and 0.94x respectively.
Notice that AIG's current Price to Sales per share ratio is 0.02x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $22.41, AIG is 99% below where we would expect to see it. This will beneficially factor into our final analysis of AIG as it is not often that this stock sinks to these levels.
AIG Cash Earnings
Price to Cash Earnings analysis is inappropriate for this company due to anticipated negative cash flows for this year. A negative cash flow presents many complications when comparing the company's current value to historically normal valuations. Clearly, when a company fails to earn a profit, it should be a concern for investors. As such, we have taken a negative view on AIG from a cash perspective. We should point out that this metric is a significant element in Ockham’s methodology for analyzing the outlook for any company.
Many young companies have come through difficult times like this before; these companies have an opportunity to grow revenue appropriately to bring them around to profitablity. However, for mature company's with a history of positive cash flow this can be much more distressing. Therefore, for AIG, our overall valutaion is now more dependent on the Price to Sales analysis, and investors should be cautious with a company with very limited, if any, positive cash earnings.
AIG Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
American International Group, Incorporated Crosses Extremely Active News Threshold for the Day, Now on Street Signs
The newswires are burning up right now on American International Group, Incorporated, so check our RazorWire or turn on your TV to see why it is so active in the news.
While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. American International Group, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; AIG has received less coverage from the financial media in business television and blogs.
“… The interesting story, it's a newsy day, metlife, there are reports out that they are finally going to make a bid for AIG's life insurance company, american life. …”
AIG Is Among the Five Most Talked About Stocks in the News Today
The newswires are burning up right now on American International Group, Incorporated, so check our RazorWire or turn on your TV to see why it is so active in the news.
The crowd at The Motley Fool does not like AIG and believes that it will Underperform. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, AIG has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on AIG.
“… Offered AIG. And I share with you, erin, this bit from paulson's book about a phone call that buffett -- that paulson gets from buffett, he had just been out doing his thing, ... …”
AIG Is Among the Five Most Talked About Stocks in the News Today
Be aware that something important has occurred for AIG and investors interested in this stock should seek out information in any way possible.
American International Group, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; AIG has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… At that point, really on the friday, we didn't know the extent of AIG's problems though were were going to come cascading in a few days but you did have a big problem with leigh, ... …”
American International Group, Incorporated Crosses Extremely Active News Threshold for the Day, Now on WSJ Marketbeat
If you own AIG, then you need to get to a TV now. It has been mentioned in the news very frequently in the last hour.
The Ockham valuation currently has a Fairly Valued stance on AIG because it trades within the price range that we would expect given current market conditions and fundamentals. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see American International Group, Incorporated underperforming. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, American International Group, Incorporated has actually sunk a bit in comparison to the others.
“… -listed companies, including small stakes in a number of companies CIC wasn’t previously known to have bought into, such as AMERICAN INTERNATIONAL Group Inc. , Apple Inc. …”
AIG Is Among the Five Most Talked About Stocks in the News Today
If you own AIG, then you need to get to a TV now. It has been mentioned in the news very frequently in the last hour.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Squawk Box said about AMERICAN INTERNATIONAL GROUP, INC.
Learn About RazorWire?Invested in AIG? Turn on the TV, It's All Over the News and Deal Breaker
If you own AIG, then you need to get to a TV now. It has been mentioned in the news very frequently in the last hour.
While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. American International Group, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; AIG has received less coverage from the financial media in business television and blogs.
“… " The facts: Relative to the size of AIG's overall business, Goldman Sachs was a small counterparty. We don't believe our marks were "aggressive," they reflected market prices at ... …”
AIG Is Among the Five Most Talked About Stocks in the News Today
Be aware that something important has occurred for AIG and investors interested in this stock should seek out information in any way possible.
The Ockham valuation currently has a Fairly Valued stance on AIG because it trades within the price range that we would expect given current market conditions and fundamentals. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see American International Group, Incorporated underperforming. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, American International Group, Incorporated has actually sunk a bit in comparison to the others.
“… to Edge," to understand the relationship between AMERICAN INTERNATIONAL Group (AIG) and its OTC dealer bank counterparties. …”
Volatility Alert: AIG Blasting Across the Newswire on Felix Salmon Reuters
Be aware that something important has occurred for AIG and investors interested in this stock should seek out information in any way possible.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, AIG has been less covered in the news compared to the rest of our universe of stocks. The crowd at The Motley Fool does not like AIG and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on AIG.
“… In fact, it made a loss on mortgages, but managed to mitigate that loss by hedging its position with AIG and others. Yes, the short side of the hedge made lots of money, but the ... …”
Zero Hedge: An Extremely Hot News Day for American International Group, Incorporated Today
The newswires are burning up right now on American International Group, Incorporated, so check our RazorWire or turn on your TV to see why it is so active in the news.
American International Group, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; AIG has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… In August of 2009, for weeks on end, Citigroup, Fannie Mae, Freddie Mac, and AIG (and sometimes Bank of America) comprised nearly 40% of the daily NYSE composite volume. …”
AIG Is Among the Five Most Talked About Stocks in the News Today
If you own AIG, then you need to get to a TV now. It has been mentioned in the news very frequently in the last hour.
The Ockham valuation currently has a Fairly Valued stance on AIG because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, American International Group, Incorporated has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see American International Group, Incorporated underperforming.
“… In August of 2009, for weeks on end, Citigroup, Fannie Mae, Freddie Mac, and AIG (and sometimes Bank of America) comprised nearly 40% of the daily NYSE composite volume. …”