The Market's Most Hated Stock Is a Buy (AIG)

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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Austin Smith owns shares of American International Group. The Motley Fool owns shares of American International Group, Bank of America, Citigroup, and JPMorgan Chase and has the following options: long JAN 2014 $25.00 calls on American International Group. Motley Fool newsletter services recommend American International Group. Try any of our Foolish newsletter services free for 30 days.

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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.

updated 1 day ago Sponsored by:
	DOW	15,354.40	121.18	0.80%
	S&P 500	1,667.47	17.00	1.03%
	NASD	3,498.97	33.73	0.97%

AIG	$45.23		+0.32	+0.71%
American Internati…		CAPS Rating:

JPM	$52.30		+1.33	+2.61%
JPMorgan Chase & C…		CAPS Rating:

C	$51.45		+0.84	+1.66%
Citigroup Inc		CAPS Rating:

BAC	$13.43		+0.07	+0.52%
Bank of America Co…		CAPS Rating:

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The Market's Most Hated Stock Is a Buy

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

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