NYSE:AIG
$34.23
(3/12 7:59PM)
-2.5%
| Open | $36.1 |
Mkt Cap | $4.6 Billion |
| High | $36.53 |
52Wk High | $55.90 |
| Low | $33.83 |
52Wk Low | $8.22 |
| Volume | 21.0 Million |
Avg Vol 10D | 32.5 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
Rating specific information requires Premium Access.
Buy Now
or
Learn More about Ockham's Features and Services.
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 1.76x and 0.99x respectively.
Notice that AIG's current Price to Sales per share ratio is 0.05x, 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 $34.23, AIG is 97% 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.
Stocks to Watch: AIG Heavily Covered on Zero Hedge
AIG has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.
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. That being said, the recent price appreciation may be too much, too fast and we will consider downgrading on our next report. Check the news on this stock because there is a catalyst that has allowed this stock to advance 28.15% today. 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.
“… Before that it was Goldman and swap gate; before that it was Goldman and AIG-gate; before that it was Goldman and SLP-gate, and on, and on. …”
American International Group, Incorporated Crosses Extremely Active News Threshold for the Day, Now on Zero Hedge
Be aware that something important has occurred for AIG and investors interested in this stock should seek out information in any way possible.
Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see American International Group, Incorporated underperforming. Take notice of the news on this stock because it is up $7.52 since the close of trading yesterday. 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. But as the price has risen in the last week, we have begun to look slightly less favorably on the valuation. 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.
“… The previous euro short record was -71,623 attained on February 23, when Greece had still to be renamed to AIG. Yen shorts declined modestly, after surging as we pointed out, by ... …”
Volatility Alert: AIG Blasting Across the Newswire on Bloomberg News
Be aware that something important has occurred for AIG and investors interested in this stock should seek out information in any way possible.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Bloomberg News said about AMERICAN INTERNATIONAL GROUP, INC.
Learn About RazorWire?Volatility Alert: AIG Blasting Across the Newswire on Fox Business
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. Check the news on this stock because there is a catalyst that has allowed this stock to advance 29.41% today. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on AIG. That being said, the recent price appreciation may be too much, too fast and we will consider downgrading on our next report.
“… Saying that AIG old promises are not negotiable. $40 million due to cutbacks out of the money paid out to the financial product unit in 2009. …”
Volatility Alert: AIG Blasting Across the Newswire on Fox Business
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.
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. Take notice of the news on this stock because it is up $8.23 since the close of trading yesterday. 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. But as the price has risen in the last week, we have begun to look slightly less favorably on the valuation.
“… And the retention bonuses given at AIG, no fear, some of that is coming back. And a plastic surgeon here in new york, the new world champion in "donkey kong" and is your special ... …”
Short Sellers and AIG Discussed on Power Lunch
No matter if you are long American International Group, Incorporated, it pays to understand the reason that some are shorting it. American International Group, Incorporated and shorts were a topic covered on Power Lunch.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Power Lunch said about AMERICAN INTERNATIONAL GROUP, INC.
Learn About RazorWire?Stocks to Watch: AIG Heavily Covered on Power Lunch
AIG has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Power Lunch said about AMERICAN INTERNATIONAL GROUP, INC.
Learn About RazorWire?Stocks to Watch: AIG Heavily Covered on Squawk On The Street
We are observing a lot of attention being paid to AIG in the news, so if you hold the stock you may want to take a look at what is going on.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Squawk On The Street said about AMERICAN INTERNATIONAL GROUP, INC.
Learn About RazorWire?Squawk On The Street: AIG is Among Most Active Stocks in the News Today
Something important is going on with AIG today, as it is getting a lot of attention on business television and influential blogs.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Squawk On The Street said about AMERICAN INTERNATIONAL GROUP, INC.
Learn About RazorWire?Be Aware There is a Lot of News Today On AIG and This Instance Comes from Deal Breaker
We are observing a lot of attention being paid to AIG in the news, so if you hold the stock you may want to take a look at what is going on.
American International Group, Incorporated received our Fairly Valued rating in our latest report because the price at the time of the report of $24.77 did not seem out of line with the fundamentals. The price has risen since then and all other things being equal that makes AIG less attractive. 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. The latest news on AIG has created quite a stir as the stock is trading $9.38 higher in today's session.
“… leaving AIG, said the people, who declined to be identified because the negotiations are private. Under the program, compensation earned by former AIG staff in 2009 from another ... …”