AIG Proposed Reverse Stock Split: Shareholders Should Vote This Down as a No-Brainer
This 1:20 split smells, to me, a bit too rancid for the ordinary shareholders, not to mention the U.S. public who are hoping to recover their investment.
This 1:20 split smells, to me, a bit too rancid for the ordinary shareholders, not to mention the U.S. public who are hoping to recover their investment.
Michael Jackson and Elvis died too young. They had the same handicap that many people with money acquire, the entourage.
We know times are tough, but there are some places where you really shouldn't cut costs. Here, five areas where it's worth spending the cash, plus suggestions on alternative ways to save a buck.
We have a financial system that has played to people's weaknesses. We have allowed people who are prone to instant gratification to have as much credit as they could get their hands on.
Say you stop wasting your entire unemployment check on the hedonistic pleasure of protecting your precious credit rating. Instead, you're going to try eating, and maybe splurge on health insurance.
Suddenly, spending three hours on the phone with your bank demanding an explanation for a $35.00 late fee is the most profitable way of spending your time.
When investors got clobbered in 2008, the most common lament was: "I had no idea I could lose that much in the market."
Just call me Lucifer cause I'm in need of some restraint The Rolling Stones Dante's Inferno described Hell as nine layers of suffering. Each l...
Recent filings show Judge Sotomayor's net worth is $740,000. Sounds impressive... until you look under the financial robe of the woman who is the second most talked about female in Washington after Michelle Obama.
The failure to fully understand the odds is one of the primary reasons why the average return for most investors is so dismal.
President Obama is seeking massive changes in the way the US is operating when it comes to energy, transportation, agriculture and labor, among others...
I have started to keep a list of the sneaky stuff that businesses do to transfer money from my pocket to theirs. Here are the five that reached my list this month.
Stop using your credit cards. But don't throw them away. Save the actual cards, because they're still useful in so many ways.
I know I'll never forget that horrible sight, I guess I found out for myself that everyone was right. Won't come back from Dead Man's Curve. -Jan a...
Note from Don McNay This enclosed piece was sent to me by Mike Behler, my college roommate and close friend since childhood. Mike has frequently sen...
The biggest tragedy will be if the bailouts stifle creativity and innovation. We need to be enabling the next American heroes.
It seems like everybody is in the financial advice-business, but how do you know if someone is qualified to help you?
During the NBA basketball finals, Magic Johnson has been a major part of the television coverage. He has been commentating during halftime of the ga...
I detest the way Orman talks down to people and shames them. I think of her as the Dr. Laura Schlessinger (no relation!) of finance.
As a (former) daily viewer, I understood the network's biases but never cared as it usually gave me good information. Now, all they do is yell at me.
Businesses are being forced to adapt to stay on the front lines and so should you! The recession can be a curse on an opportunity -- make it the latter.
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We need to stop the corruption by Goldman, bank of Amerika, and Jp Morgan. Stop the Geithner and bernanke. .
Obama's policies may not be working as well as many had hoped:
1st 100 days - There are 2.9 million more people unemployed in May than there were unemployed in January. The unemployment rate went from 7.6% to 9.4%. Since May 2008, we have lost 5.5 million jobs. The biggest losers were:
Manufacturing 1.5 million lost
Finance & Prof Serv 1.5 million lost
Construction 1.1 million lost
Retail & Leisure 1.3 million lost
good political & economic articles: http://iamned.blogspot.com
Michael: In retrospect, I believe the reverse split really did cause the after- split share price to tank. It's irrational that this would happen but it did. I sold at $1.43/sh two days ago and I still don't know why other than I had an uneasy feeling about owning this crummy stock at $29/share (20 times 1.43.) It was dumb luck but wouldn't you know I bought it back today at $ 19.10 and am currently down a little again. Won't we ever learn?
This market is chock full of bargain hunters and traders, there are few retail investors active in the market other than them. Buy and hold is dead. So, when even some blue blood stocks are below 20 bucks, why would they buy AIG, the company still has that carrion like smell. AIG got a lot of attention from the players at a buck something, at 20, its dead. You could buy a thousand shares of something with potential for a quick return, or you could buy 50 of AIG.
In this market, its the most bone headed move I have seen yet. Give it time...with the interest it gets, the price will be back down to a "playable" range, somewhere below 5. Citi, take note....
Market moves are based on percentages, and if there are a ton more of outstanding shares (pre-reverse-split) it would be harder to move the stock, say 20% in a day.
Technically a stock priced at 30, going up 20%, you end up at 36, but at $1 its $1.20.
If you have 1000 shares at $1, it goes up 20% to 1.2, you have the same amount of earnings as if you have now 50 shares and the stock was at 20 going up to 24. Either way you have a profit of $200.
Less people may be inclined to move into the stock at $30, due to the risk factor, but its moves should be larger moves (# wise, not % wise) with less shares outstanding. It may look prettier for a stock thats at $1 to go to $2, but the chances of that are just as high as it being at $30 and going to $60 since it would take more participants at $1-$2 range to move the stock
i too own AIG. bought it at .49 and twice sold rebought and sold again. i believe the price runup was hedgefund guys. you weren't buying value, but speculation, plain and simple. the reason there was so much action when it was $1-2.00 is because of the spread, the precent of profit. when AIG was at say $1.60, it could fairly easily go to say $3.20 and you could easily double your money. at $20.00 it has to go to 40.00,,,,,,,,,,,,,
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