AIG a buy?

[tripods68]

I'm considering buying AIG stock at $4.89 a share. I'm just trying find out a good price entry point to buy 500 shares.

AIG shares jump 27 percent on shareholder plan report: Financial News - Yahoo! Finance

[Broken Arrow]

I don't know if you saw me mention AIG in my blog or not, but my personal opinion is that it's the "best of the worst" right now.... Very dangerous though. I actually thought about it at $2 a share, but ended up not jumping in because I didn't understand the nature of the possible government bailout, which was just barely forming at the time.

The link that you've provided illustrates the reasoning behind the price jump today (despite the fact that the financials today have gone down significantly).

I guess my question now is, assuming all these recent news have already been baked into the stock price, where do we go from here? What do you expect will happen next and why the stock price would go up or down?

...

And I don't have an answer to that question just yet. By now, you know about me and forward fundamentals. However, long term, I THINK it will go back up, and maybe significantly at that. Short term, very volatile.... AIG is the riskiest I'm willing to play, but I'll probably go elsewhere. I'm looking more along the lines of Wells Fargo or J.P. Morgan.

Then again, I assume $2500 is a small position you are considering here, so maybe that's OK, so long as it's within a percentage play that you're willing to risk.

Sorry, thought all over the map. I'm kind of undecided myself on this one. What do you guys think about this?

[tripods68]

BA - Life doesn't present itself with many sure things in life. Investors have been burned for far too long and I think it's only matter of time before sentiment turns and everyone comes back on board with AIG. Presidence has been set by the message sent to naked shorters. The way they do business in the financial market is done forever.

Bought 200 shares at 4.999 just to start with.

[Broken Arrow]

I agree. That's why trading is so difficult, because nobody has a magic crystal ball that can look into the future.

Just the same, there are basically two kinds of stocks to me. Ones that I can get an idea of where it may go next and ones I can't. Most fit in the latter. The former, well, I'm looking for an entry point.