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September 27, 2010
Edited: September 27, 2010
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$37.80 +$1.31 (3.59%) 10:46AM EDT
... the 1 year Estimated Target : $25.00 +/- $ 0.25 though my gut says lower!
While I agree with:
Press Releases Zacks Analyst Blog Highlights: American International Group, Citigroup, Deutsche Bank AG, The Goldman Sachs Group and Morgan Stanley
-- http://www.zacks.com/stock/news/40030/Zacks+Analyst+Blog+Highlights3A+American+International+Group2C+Citigroup2C+Deutsche+Bank+AG%2C+The+Goldman+Sachs+Group+and+Morgan+Stanley+++
I can't help but look at the USA /AIG discussions to convert the USA's holdings of AIG preferred stock into common stock as anything but detrimental to the common stock price. Also, AIG must pay back BILLIONS to the FED first ... mostly by selling chunks of itself, which reduces assets, reduces liabilities, and also reduces REVENUES, as well as net income, and earnings per share.
Declining revenues and earnings ( EPS (ttm): -$13.78) means the P/E, when there are earnings, is going up.
What is a reasonable P/E for a shrinking company as compared to other companies in the same sector and industry?
What is a reasonable P/E for a shrinking company when you can't tell where or WHEN the shrinking will stop?
Too many questions with no answers gets a SELL opinion.
