Comic Relief: Citigroup Posits AIG Equity Worthless

A Citigroup analyst wrote a research report claiming that there is a 70% chance that AIG's equity is worthless. Investors may be shocked that such a bold and decisive investment proclamation could emerge that is such a deviation from the usual "neutral" and "hold"-type crap emanating from most Wall Street analysts. What could've possessed this analyst to finally put his foot down and proclaim now, a year after the company has lost 99% of its market value, not to mention puked over $100 billion in actual earnings, and received a massive government infusion, that the final $2 billion in market cap is in danger? What type of secret insight can this analyst possibly have that the AIG stock-buying diehards are missing? Well, he does work at Citigroup. Really, does anyone know worthless equity better than Citigroup?

A few weeks ago, I looked up at my stock screen and was astonished to discover that AIG was a $20 stock again. After rubbing my eyes a few times and conducting a small amount of due diligence, I discovered the company has executed a 20-1 reverse split. The move was done presumably to keep the company's stock listed and to entice investors into buying the stock again? I'm not entirely sure. What it means to me is that I get yet another opportunity to short this stock into the dust. I don't consider this move to be un-American, merely a hedge against all of my taxpayer dollars that are being wasted keeping this unwieldy beast of a company afloat.