AIG

[sgd]

I hear they have disposed nearly all the toxic debt repaid the gov bailout with interest and cleaned up nicely. The US gov have also since exited their investment in AIG.

Why buy it?

They planning to retire more debt and possibly resume dividends soon.

NAV is US$57 still a little bit undervalued from current price (risen from the depths of $20).

it's a laggard compared to other competitors
http://beta.fool.com/acardenal/2013/06/2...aig/38131/

Lastly interest rates are going to rise, when int rates rise stocks fall but companies like banks, insurance companies usually do well. Insurance companies make money from investing their free float in high interest bearing assets and AIG have around 375 million insurance premiums worth around US$1.9 trillion.

AIG highest peak was touching US$2000 a share.
Before it crashed to $20 it was US$400 a share.

Needless to say this is going to be a long term investment but if there are dividends it could be worthwhile to park some money around. And If interest rates rise over several years could also see strengthening of US$ so overall could lead to unexpected forex exchange gains.

Seems like a logical investment to go for.

(vested)

[ikur1]

Actually I was looking at their investment portfolio.
in the risk section, they disclosed that if interest rate go up by 1%, their bond portfolio value would drop by about 16 bil
however, at current price, still way below book taking in the charge.

also consider all the investment income they receive from their float.
seems to be in the 14 bil region.

in the process of finalizing divestment of ILFC, after that they're left with 2 core biz. chartis and sun america.

my question is what is the real float of AIG?
I've come up with a few calculations of float, but in the balance sheet it's shown clearly it has got 375 mil of investments, isn't this the float ??

(vested)

[sgd]

AIG resumes paying of dividends, declares 10 cts a share dividend and announces stock repurchase up to $1 bil

Still not too late to get in on this long term investment.

http://www.forbes.com/sites/steveschaefe...strong-q2/

[Big Toe]

AIG is nice, still not too late.
They did not actually pay back the gov, they issued plenty of new shares to the gov.
The gov started divesting and is left with 0% stake some months ago.

It is never wise to look at the rear view mirror, look into the windscreen and what's going to happen.
Some companies just fade away and never come back, some come roaring back. Which is which? You decide but I do agree
the NYSE as a whole is a much better place to invest rather than SGX for now.

[sgd]

3 Types of Investors That Should Be Gobbling Up AIG Shares

http://www.fool.com/investing/general/20...up-ai.aspx

[yenyenpark]

http://online.wsj.com/articles/aig-names...1402431528

Peter Hancock from JP Morgan previously until he joined AIG in 2010

[CityFarmer]

Insurance companies in China, is doing well, together with brokerage houses. AIG also benefited by its China investment...

AIG profit beats estimates, boosts buyback by $5 bln

American International Group Inc , the largest commercial insurer in the United States and Canada, reported a quarterly operating profit that breezed past analysts' estimates, and boosted its share buyback by up to $5 billion.

Shares of the company, which more than doubled its quarterly dividend, were slightly higher in volatile after-market trading on Monday.

The results were primarily driven by investments in one of China's biggest insurers and earnings from the insurer's stake in aircraft lessor AerCap, but lower underwriting at most of its units caused concern.
...
http://www.todayonline.com/business/aig-...es-buyback