AIG May Have Zero Value After Rescue, Citigroup Says
By Daniel at 9 July, 2009, 2:10 pm
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July 9 (Bloomberg) — American International Group Inc., the insurer bailed out four times by the government, will likely have no value left for private shareholders after repaying the U.S., Citigroup Inc. said.
“Our valuation includes a 70 percent chance that the equity at AIG is zero,” said Joshua Shanker, an analyst at Citigroup, in a note to investors late yesterday cutting his price target on the New York-based insurer by more than half.
http://www.bloomberg.com/apps/news?pid=20601087&sid=agv3et0o2vYA
You gotta love it when Citibank talks about having “zero value”
It’s really heartbreaking to see AIG trade.
People are losing money.
But I’ve done everything I could to warn people.
This thing has no value.
It won’t attract penny stock traders again until it’s back to penny stock prices.
There’s no reason for shorts to cover.
When you look at the recent market run up, you have to wonder about it all.
People will do the craziest things.
In the end the only discipline is reality.
Just heard Erin said the CEOs were sad.
“They shrugged their shoulders and couldn’t tell why the market was this high.”
The dorks like Jim Cramer are not helping anybody.
They hurt people by telling them there’s always a bull market.
Like real estate also goes up always, right?
Location. Location. Location.
You just didn’t pick the right location.
And when it blows up they always find some others to blame, oil speculators, Il Duce, etc.
And the people like the Madoff investors, expect the government to protect them and make them whole.
By the way, Citi should know all about zero value. They are experts at that assessing that.
tarn.
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