American International Group, Inc. (AIG)

[fxchat]

Yea, even though aig had bad downgrade, the institutions are still holding their shares.

I guess, they are betting that AIG will be successful by next year.

And that this is really a low price to pay for it.

Counting that the US government equity investment on AIG is 40bln for its 80% worth of equity, I dun think the government is going to lose those $40bln away...

They will make sure AIG grow to $50bln so that they can break even.

So I foresee a very strong outlook for AIG, where it will be aided by government so that it will grow to a $50bln market cap company.

This means the stock should be worth $200 in the next 3 years.

That is the real value of AIG. ANd thus I think the downgrade are just thinking of present condition of AIG, and that is not a good way to go. We have to think of the potential that AIG has too.

Short term trading, this may go up to $70 or even $100 by october.