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The Market's Most Hated Stock Is a Buy

American International Group (NYSE: AIG) brought the world to its knees just a few years ago, and that's left a justifiably bad taste in most investors' mouths.

However, the company is too cheap for you to ignore today. Even after rising more than 40% in 2012, the company trades for less than half of its tangible book value. That's about 20% of its historic norm. 

Even with the potential for tighter regulation, more scrutiny, and the likelihood of being labeled a "systematically important financial institution" (which comes with a shorter leash) AIG should handsomely reward shareholders, even if it returns to just a fraction of its former valuation.

If you'd like more information about  whether AIG is a buy at today's prices, we'll help you sort fact from fiction in our premium analyst report on the company. Just click here now for instant access.


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  • Report this Comment On December 06, 2012, at 4:25 AM, KevAZ wrote:

    " AIG should handsomely reward shareholders, even if it returns to just a fraction of its former valuation." What an incredibly un-Foolish thing to say. One of the things that I've learned from TMF is never to buy a stock because of it's previous pricing levels. This is how people go bust on penny stocks (If goes back up to $2 from 10 cents...). That being said, there is merit in other parts of your pitch.

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