NYSE:AIG
$34.64
(3/18 4:00PM)
+0.7%
| Open | $34.84 |
Mkt Cap | $4.7 Billion |
| High | $35.38 |
52Wk High | $55.90 |
| Low | $34.1 |
52Wk Low | $8.22 |
| Volume | 14.3 Million |
Avg Vol 10D | 35.3 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.
Sentiment and AIG Discussed on America's Nightly Scoreboard
It is always benefitial to understand the market's sentiment for a particular stock, and America's Nightly Scoreboard talked about some aspects of sentiment for AIG recently.
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.
“… Whether AIG, financial sector or the auto industry, they get addicted to the money so we have AIG constantly acting for more money. Which they don't have it all. > > …”
Stay Current on AIG's News on America's Nightly Scoreboard
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to American International Group, Incorporated.
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. 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. 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.
“… AIG and the auto industry bringing up most of the bill. Will we ever discover the true cost? Okay, you're asking for it. > > …”
A Few Words from National Post Network Blogs on American International Group, Incorporated and Sentiment
It is always benefitial to understand the market's sentiment for a particular stock, and National Post Network Blogs talked about some aspects of sentiment for AIG recently.
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. 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. 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.
“… Bespoke has compiled a list of the most overbought stocks in the S&P 500 and it includes AIG, Office Depot, Citigroup and Whole Foods—all stocks that got hammered in last year’s ... …”
AIG News Mentioned on Fox Business Recently
The latest news from Fox Business on AIG is available through Ockham's news analytics platform RazorWire.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Fox Business said about AMERICAN INTERNATIONAL GROUP, INC.
Learn About RazorWire?There is Significant News on AIG:Among the Twenty Most Active Stocks in the News
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?Zero Hedge: An Extremely Hot News Day for American International Group, Incorporated 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.
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. 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. 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 plane-leasing unit of AMERICAN INTERNATIONAL Group Inc. , show investors are receptive to companies closely linked to the U. S. …”
RazorWire: AIG and Regulators Talked About on Zero Hedge
Regulatory issues are always of interest to investors. Recently Zero Hedge covered topics including regulators and American International Group, Incorporated.
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.
“… was in charge of the Lehman account at the FRBNY some schizophrenic (and please let it not be discovered that the person in charge was, just like in AIG's case, again Steven ... …”
Street Smart With Carol Massar and Matt Miller Looks at Balance Sheet of AIG
The balance sheet is a key indicator of a company's financial standing; AIG's was discussed not long ago on Street Smart With Carol Massar and Matt Miller.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Street Smart With Carol Massar and Matt Miller said about AMERICAN INTERNATIONAL GROUP, INC.
Learn About RazorWire?What Is Bloomberg News Saying About AIG's Balance Sheet?
Financial strength is a characteristic of most stocks that our methodology tends to look favorably on, and AIG's balance sheet was recently in the news.
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?What Is Fox Business Saying About AIG's Balance Sheet?
Financial strength is a characteristic of most stocks that our methodology tends to look favorably on, and AIG's balance sheet was recently in the news.
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 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.
“… we also talked about the bloomberg news story today on AIG. The company, a g -- AIG is try to shore up its balance sheet. …”