Tag Archives: AIG

Why I Don’t Write About AIG Anymore

So someone asked as to why I am not writing updates about AIG anymore.  The simple answer is, my work is done.  The whole point was to draw attention to AIG, before the financial crisis.  I knew it was rotten and now, so does everyone else.  So I don’t have to write about AIG anymore, the word is out, my work is done and I am pleased to see people are paying more attention to the likes of AIG.

You should not trust this company, be cautious and be careful when dealing with them.  They work for you, not the otherway around.

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What AIG Doesn’t Want You to Know

You might have noticed, at least I did, that since we gave AIG way more money than we should, they don’t have commercials on TV. Oh, but wait, they do! They just don’t call it AIG anymore, they want you to think that the company is someone else. But since AIG is so damn cheap and their marketing always sucked, it was pretty obvious when I saw commercials for Matrix Direct and Century 21 Insurance that it was really, AIG.

First Matrix Direct was acquired by AIG in 2007. Their commercial is an AIG commercial in fact is almost word for word the same. They were so lazy they didn’t even bother to change the graphics that said AIG to Matrix Direct. If you are going to try and pretend you are not something you are, at least change the text.

Also in 2007, AIG about 21st Century Insurance, they are on TV for auto insurance. Now this is an actual new commercial but they style is classic AIG, lame, tacky and misleading, so it was obvious to me that it was AIG.

Both commercial are currently playing so if you see them, just remember, they are AIG, the company that stole our money. So don’t give them even more money because we know they can’t handle it, you might as well burn the cash with the way they operate.

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AIG Bailout

As I am sure you can guess, I am not happy with the bailout of AIG.  They are not being forced to feel the pain and so the dollar may feel the pain as a result.  This was a bad move.  Protect the policies but not the managers, they showed they do not deserve to money they earn.  Hey, so much for the “We Know Money” slogan!  Told you they didn’t get it.

Anyway, I am still waiting for the dust to settle to do the post analysis, of which I assure you will be worth the read.  The only one’s who were happy today were AIG employees who now get paid thanks to the bailout.  The markets drop of 450 points on top of the 500 earlier this week, shows nobody else is happy.

Since we own their butts, I would like to put in place a pay for performance salary policy and $7 an hour wages at AIG.  That way, we get our $85billion back faster before they benefit.  Once we get our money back they can go back to what they were making but not while my dime is paying for their stupidity.

I was right about their fall, trust me, if they screw us over, the dollar will fall and then who is going to bail us out?  Here’s a hint, nobody.  Do you think the Chinese, Russians or Europeans are going to help?  Don’t hold your breath.  Most would enjoy watching us go down.  Of course if we go, they go, but they dont’ see that until it already is too late. 

I’d also like to thank the AIG employees who come to my blog to the tune of 50 a day.  Since I’m your new boss, please get your ass back to work and stop surfing the net!

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AIG Sinks Again

Can you hear the splashing of water?  That’s AIG trying to stay afloat, reaching a new low of $4 a share.  Wow! 

 

So AIG is seeking some relief, the feds are in and even Cramer was saying we should help AIG because of the insurance policies.  Yeah, save the policies, not the company.  The government should look at bailing out the policy holders, not AIG.  After all, AIG is the one who screwed up, not the policy holders!  So why help AIG who has proven it doesn’t know money.

 

Look, before AIG gets help, it can help itself by doing a few simple cost cutting measures. 

 

  1. Eliminate all perks, no corporate housing, no cars, cut back on everything and anything.  You’d be amazed what you can save when you do that.

 

  1. Cut salaries by 50%, I know, drastic, but not like you got a lot of options right now. 

 

  1. Sell off assets.  Lets face is, someone will buy up prime divisions, why not make some money and give investors an out, after all that’s your charter.

 

These simple measures would save the company in the short term, long enough to help what is left to move up again.  But I am sure as usual, they will want a bailout, the feds are involved so you that’s on the table.  I say no to a bailout.  Investors get hosed and management gets away with murder!  Management needs to be the first ones to feel the hurt, that is in the interest of investors, put a flame under their ass and get them to work for their money.  Pay for performance should be implemented.  You want that six figure salary, put up the numbers!  That will trim the fat real fast. 

 

AIG should go the way of Lehman’s and then let the feds step in and save the policies.  Management at all levels has not done their job and should not be saved.

 

BTW, thanks everyone for visiting, a new one day high was reached today.

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AIG’s “Special Call”

So AIG is having an analyst call on Monday.  Word on the street is, they are going to say everything is just fine, don’t worry about the fact the stock has dropped like a rock to $11 mid day Friday, a drop of about half the value.  This is what Bear Sterns and Lehman’s did and look what happened to them.

 

Unlike Bears, I don’t think AIG is too big to fail; there is a big difference here between Fannie and Freddie or even Bears and AIG.  AIG is a collection of companies under one roof, not truly a company unified as one entity.  In fact, AIG has two options, raise capital, which I don’t think is a smart idea if you are an investor or sell off assets.

 

Frankly I’m for the break up of AIG; it is too big and has too much fat and too many people getting paid a lot of money to do nothing of much value.  Taking away the perks and the corporate pork by breaking the company up into smaller ones will make the better parts, stronger investments for those willing to invest.  Having seen how some of those divisions work, I wouldn’t hire them for my team, they sit around too much, at least the management level.  It is a recipe for poor performance.  When the markets were good, so was AIG, this is when you see the real metal of a company and they are failing.  Really the stock is a reflection of this stagnation management style.  Sure the workers in many divisions are good but the management is not and who calls the shots, not the workers.  So some think this is a blip, no, going from $60 to$11 is not a blip.  I said this before, there are some serious fundamentals wrong with this company and they are not fixing them just putting their head in the sand and pretending they don’t exist.  That is not going to help, so break up the company, it’s the best option for investors to get some gains out of this. 

 

Of course odds are that management will fight this course of action tooth and nail but it is the more logical point of view for the investor, to break the company up and reap the profits.  The fact is, AIG is so big and spread out that in down markets like this where financials are getting hit hard, AIG’s diversity works against it.  As a corporation, it needs to think about the investor, what’s best for investors is clarity, sell off divisions and make it clear what business AIG is in.  Until then, every negative hit to financials, AIG is going to feel.

 

BTW, thanks to AIG for breaking the one day corporate record on this blog.  In a 24 hour period, you had more hits than any other corporation to this blog.  I didn’t realize your marketing being so bad was such a hot topic.  I was just skimming the surface, I was thinking of actually showing you how to fix it, but why give you something for nothing, not like your stock is worth zero, yet.

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AIG Stock and Marketing Connection

Here and on message board, for two years I said AIG was going down.  I predicted $30 per share; it’s been in the low $20’s for a few months now.  Back when I said it was going down, it was in the $60’s and way over priced in my opinion.  Something that I find interesting is how, as the stock price goes down, the amount of marketing AIG does, has gone up.  Is there is a connection?

 

As I said two years ago in a previous post (you can do a search and find it on here), marketing isn’t going to save AIG, especially with the commercials they have going on right now.  This series in which they use kids, I don’t know who came up with that but it’s in the running for the worst ad campaign of the year!  I could get a couple of sugar buzzed high school kids to brain storm better ads.  Nobody sits there and say “oh, honey how cute!  That little kid is talking insurance and financial needs, let gets some AIG products!”  The commercials are just so off base.  The kids ramble on, you know they have no clue what they are saying, just reading a script and it mono tone.  Just bad all around and I’m sure they are not seeing an ROI on these ads that justify the expense.

 

 

 

Then you have AIG American General, ok, a little better but still just nonsense.  This commercial catch attention for 5 seconds, then, mass ADD kicks in and we zone out and focus on something else.

 

 

 

 

As I said in my previous post, marketing isn’t going to save you AIG because you don’t get marketing!  The only commercial series with potential is these facts commercials like this one.

 

 

 

 

It’s nice, good work on the crew that did the filming, I like it.  But AIG misses the punch.  It’s like, yeah, adds 8 years to my life, and what’s that have to do with you AIG?  Nothing as far as I can tell because you don’t make the connection and I’m not doing your job and doing it for you.  So nice graphics, bad follow through. 

 

I think AIG is so close to their own products (or totally clueless, but I’ll give them the benefit of the doubt) that they can’t tell, the rest of us don’t sit around thinking about their products all day, we have a life and insurance is a side issues in our lives.

 

So AIG, since I know you come to visit my blog any time I post about you, here’s my challenge, I can fix your marketing, if you guys actually want marketing that works instead of just pretending to do marketing, here’s my email: Edward@echenard.com.  Seriously, since you are here reading this, why not figure out how to make money with your marketing because I can tell you have not caught up to the times in marketing.  $40 lose in share price proves that, so seriously, send me an email and chat.

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