Is this a good time to enter or should existing shareholders throw in the towel? Within the span of just 3 years, AIA share price crashed by a whopping 50% and is now trading at a dismal 7-year low. An SG Wealth Builder wrote in to enquire if the current AIA share price is worth entering.
Founded by Cornelius Vander Starr in Shanghai, AIA Group had been the main Asian subsidiary of American International Group (AIG). Subsequently, AIG left Shanghai in early 1949 due to the civil unrest and Cornelius Vander Starr shifted the company headquarters to New York city.
During the Great Financial Crisis in 2008, AIG was bailed out by the US government for a staggering US$150 billion after one of its business units dabbled in risky collateralized debt obligation (CDO) which almost led to its collapse. Consequently, AIG was forced to sell AIA in 2010 as part of its efforts to repay US tax payers. AIA then made its way back...