AIG and WM for long term?

[bolo00911@hotmail.com]

So AIG got bailed out, and looks like WM will either merge or get help from the fed. Avoiding going out of business.

I was wondering if it is a good idea to put money in AIG and WM for long term investing?

Even though the market can get worst I believe going long term it will be a great buy.

So what you think?

By the way I'm new to all this investing stuff.

[Fredledingue]

Not AIG.
AIG realy got the full blow of it all. The bail out literaly whiped off the stock value. It's literaly symbolic right now. And will stay so for a while. They have a debt of 85 billions, I don't know if you realize what it means...

WM, very cautiously, without hurry and little at a time.
They could see more though times ahead. A merger won't necessarily add value to existing shares.
What you can play, while keeping this gamble reasonable, is that they will profit from the 700 Bln rescue plan...

[Fredledingue]

So, I guess WM is now out of options...
Anyone bought before they were sized by the FDIC?

It came so suddenly...

[JBobo]

Personally, I think AIG would be a good buy. I bought 176 shares at 5.48 (mistake), but I'm still confident that it will eventually go back to the 15-20 dollar range. They are a huge insurance company that cover 130 countries, and if they go out of business, the world will be a mess. Thats why they were bailed out. And the leaders of AIG have said, they will be selling parts of the company to pay off the bailout, and that they will be a smaller company, but they also said they will remain a profitable company once this mess is complete.

[bolo00911@hotmail.com]

I decided to wait it out.

But still thinking of AIG.

[Fredledingue]

If you play it on the long term, keep in mind that the governement holds 49% of the shares and will unload as soon as the stock appreciates. That will put tremendous pressure on the stock price for a long time.

Buy in two or three years when you hear that the gov has sold all their shares.

[rayjman]

I'm long AIG and just keep re-shorting LEAPs through options and collect premium/time decay
nice income trade if you play options. Don't expect too much in a few months so have been shorting JAN 09 calls with good success on pops

[S500]

The best stock for long term is Ge it is gonna recover faster then some of the other companies since General Electric has so many different departments.