Tag Archives: Stock

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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Filed under Branding, Business, Marketing