Are stocks like Citi, BOA, AIG, and GE good buys right now?

Why would you, as an independent investor, consider buying stocks like Citi, BOA, AIG, and GE? Of course their current stock values have never been lower. Well the only way is up, right? The management decks have been swept clean of the bad decision-making debris. The so-called toxic assets are guaranteed by the taxpayer through federal government bailout billions.

  • Citi or more properly Citigroup inc. of Park Avenue New York is one of America’s biggest banking corporations. The only way to judge whether this stock is a good buy in terms of current stock value and the direction it will move is to research. Turn to the Internet and your broker for real time information.
  • BOA or the Bank of America (BAC is it’s stock market code) was a highly valued stock in 2006 with a peak stock market valuation of $53 per share. Today you can buy a share for around $6. Is the only way up or are their assets now so bad that the only alternative is bankruptcy?
  • AIG or American International Group had a peak share value of over $73 at the end of 2006. Today the current stock value is under $1. A good buy? Public perception counts for a lot when it comes to current stock value and the outrageous bonus payments made to the failing employees of AIG may be enough to ensure that the only way is out for AIG. Out of private ownership and into government hands.
  • GE or General Electric Corporation is not in the financial sector of the New York Stock Exchange. It is what is known as a ‘general industrial’ stock but its current stock value is on the slide as with all stocks. 10% down against its peak.

Current stock value of any company is a two-sided coin. On the stock market side it is about financial ratios such as assets to liabilities, debt to capital, profit to turnover and dividends to investment.

On the other side of the current stock value coin are you, the buyer and your motivation for buying stocks. Do you want the stocks for pure speculation purposes? Are you looking for a quick kill or are you aiming for longer-term earnings above the rate of inflation perhaps or as an income in retirement. These stocks are uncertain when it comes to short-term profit but they are backed by the government and your tax dollars, to survive long into the future. So they are a better buy for the long-term earnings.

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