Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



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.

Read/Post Comments (1) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • 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.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2140343, ~/Articles/ArticleHandler.aspx, 11/27/2015 6:15:08 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Austin Smith

A long-term investor looking to own the best businesses available.

Today's Market

updated Moments ago Sponsored by:
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 1.24 0.06%
NASD 5,127.53 11.38 0.22%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

11/27/2015 1:00 PM
AIG $63.68 Up +0.53 +0.84%
American Internati… CAPS Rating: ****
BAC $17.48 Up +0.04 +0.23%
Bank of America CAPS Rating: ****
C $54.21 Up +0.13 +0.24%
Citigroup Inc CAPS Rating: ***
JPM $67.17 Up +0.31 +0.46%
JPMorgan Chase & C… CAPS Rating: ****