Should I buy AIG when it's below $2 a share?

Question

According to my little research, AIG seems to have a future plan to reconstruct their operation. in the meantime, US government gave 85 bill loan to them to assist them.( I don't know if that was a good thing to bailout AIG) some people said AIG is more important than the big 3, but big 3 actually provide more job than AIG according to wikipedia. So my question is that since government bailout AIG meaning that AIG will have the capital to reconstruct their business, they will probably get back on track at any time. So should I buy AIG at this time when it's still below $2 a share?

2008-11-22T21:40:30Z

how about AUY, YAMANA GOLD INC? it looks decent..

Ed Atun · Accepted Answer

AIG might make you a lot of money. Buy it. Washington Mutual is up from $2 to $7..

Abdul S · Answer

If you dont have high risk tolerance --DONT EVEN THINK ABOUT BUYING AIG. Penny shares are the ones that destroy your wealth. One of my friends father bought AIG when it was at 3 dollars. Since then he has lost 50% of their investment. It will take long time for it to recover, maybe five years.. or longer. If you have extra cash lying around and dont need it for coming years, then go ahead! I am sure government wont let it sink!

Pu_Rock · Answer

It's risky.  AIG might never be the same or recover. They've lost confidence from their clients. You should look at companies who's shares have fallen low due to the market, but have been consistent companies over decades.  Like Time Warner (8 dollars per share) or Coca Cola.

Jaminio · Answer

AIG's loan is a convertible - that means that the government will get large amounts of equity and you will get massively diluted. Distressed securities are a specialist trading strategy and not the same as normal value investing.

Should I buy AIG when it's below $2 a share?

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