After the market closed today the government announced that they will be selling some more of their stock. They didn’t specify size as that is contingent upon pricing. The good news for AIG shareholders is that the company is buying back $2 billion of their stock. At just over 50% of tangible book value this is enormously accretive and is far more valuable than any other utilization for surplus cash. The stock being down after hours just makes this sweeter as the company will get a better price on its own stock. It is tough to find a more attractive long term investment opportunity than AIG is and all one needs is patience, and the acceptance of volatility to be able to take advantage of it.
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.