Why is AIG Stock going Down in July 2009?

American International Group, Inc. (AIG) stock has been going down all week after the 1:20 reverse split on July 1, 2009. The first sign that things were really bad was when AIG stock opened up at $17.50 when it should have been trading around $23 after the split. The smart traders investors sold at the open when the stock rallied back up near $23. Since the climb to $23, AIG has been falling each and every day.

On July 9, 2009 - a Citigroup analyst released the following piece of news. American International Group broke $10 and is now trading below $9. For a trade, I would buy a break back up through $10 but would sell quickly when I made profits.

Strong Chance AIG Equity May Be Worthless, Citigroup Says - There's a significant chance that American International Group Inc.'s (AIG) equity may be worthless, a Citigroup analyst said Thursday. Analyst Joshua Shanker wrote in a research note that there's a 70% chance that AIG's equity is worthless due to more losses on credit default swaps, and "management's increased openness to disposing of businesses at low valuations."

Discuss Stocks - http://stockstobuy.org


For the latest updates on the stock market, visit, http://daytradingstockblog.blogspot.com/ or Subscribe for Free