AIG still overvalued - $9 billion equity valuation, not $1.8 billion
By Daniel at 7 July, 2009, 7:31 pm
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Yahoo shows an equity valuation of $1.8 billion, but remember, public shareholders only own 20% of this company and Obama owns the other 80%, so the market is valuing AIG’s equity at $1.85 bn X 5 = $9.25 billion.
This also doesn’t include the billions of dollars of loans owed by AIG and the fact that its best and most profitable assets are being dumped at fire sale prices.
Compare to Allstate (a good company) with a $12bn market cap. AIG still is very expensive, reverse split or no reverse split.
Also, 21st Century is now sold off to Zurich. Alico and AIA hocked to Obama, AIGFP unmasked as a scam and out of business. Makes you wonder what’s left at AIG that justifies this $9 billion equity cap?
American Life operations are left, as are domestic property and casualty, but from what I’ve read, former managment has stuffed tehir portfolios with garbage (like pre-split AIG common around $70). Check out this article by an accountant and former AIG employee (not pretty reading):
The link to the article about AIG’s subs. The thing is seven parts and lengthy, but the guy did his homework. After the government gets paid, then the bondholders, its hard to imagine what value will be left for the 20% of the common equity still owned by the public.
Sam
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