AMR's dropping stock price (consolidated bankruptcy discussion & speculation thread)
Jul 22, 2011, 1:50 pm
#46
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I see nothing to put that kind of support under the stock. AMR will lose money in Q3 and probably more in Q4. Based on everything I've heard/read in the conf call, AMR's management has nothing in hand to stem the bleeding until the new jets come online.
Jul 22, 2011, 2:05 pm
#47
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Of course, the economic environment and price of oil are the wildcards. But it just seems that without any major changes AA will eventually be forced into Chapter 11 but could use that process to restructure and rejuvante its business model.
Jul 22, 2011, 2:19 pm
#48
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If AA returns to profit with a more fuel efficient fleet 3 years from now the stock would likely be worth about $13. If AA has a 50% chance of losing all shareholder value and a 50% chance of being worth $13 in 3 years, a rational risk tolerant investor would consider an AA share a bargain at $4.50.
Jul 22, 2011, 11:36 pm
#49
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I second that. Airlines are not an investment that makes you a return.
You buy airline stocks because you like airplanes or fancy owning part of an airline. If you´ve got way more money than sense then you become a big enough shareholder to actually sit on the board and make policies...
You buy airline stocks because you like airplanes or fancy owning part of an airline. If you´ve got way more money than sense then you become a big enough shareholder to actually sit on the board and make policies...
Jul 23, 2011, 2:52 am
#50
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I second that. Airlines are not an investment that makes you a return.
You buy airline stocks because you like airplanes or fancy owning part of an airline. If you´ve got way more money than sense then you become a big enough shareholder to actually sit on the board and make policies...
You buy airline stocks because you like airplanes or fancy owning part of an airline. If you´ve got way more money than sense then you become a big enough shareholder to actually sit on the board and make policies...
Over the long term, in aggregate, IIRC these stocks have been money-losing investments not only in real terms, but also in nominal ones!
Jul 23, 2011, 11:34 am
#51
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In a way I hope it happens (though I wouldn't be too happy with it). There is just NO way AA can keep up with its inflated cost structure.
Jul 23, 2011, 12:58 pm
#52
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Airlines are very cyclical stocks, so they generate short-term returns to those who have the guts (or "extra" information) to "play" them. That's why, in addition to the legacy "romantic" aspect of the industry (before it turned into the widely despised providers of today), there's a lot of Wall Street coverage.
Over the long term, in aggregate, IIRC these stocks have been money-losing investments not only in real terms, but also in nominal ones!
Over the long term, in aggregate, IIRC these stocks have been money-losing investments not only in real terms, but also in nominal ones!
Jul 23, 2011, 1:18 pm
#53
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Jul 24, 2011, 6:26 am
#54
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Jul 24, 2011, 9:28 am
#55
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The last airline stock I purchased was Eastern.
Jul 24, 2011, 12:58 pm
#56
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Originally Posted by Ambraciot
I agree AA is going to continue losing money in the near term... but if AA manages its resources wisely and capitalizes on its brand and loyal customer base, it could avoid bankruptcy and return to profit in ~3 years.
Jul 24, 2011, 6:58 pm
#57
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My thoughts...
Apple should buy AA. iPhones under everyones seat!
It really does amaze me though that AMR cannot seem to turn a profit but then again most of the other airlines merged or filed bankruptcy. AA just purchased all these new planes and it is kind of scary with gas prices going up I hope they can keep in business.. I know I would sure miss my Platinum status and would be devastated to lose all of my miles.
Apple should buy AA. iPhones under everyones seat!
It really does amaze me though that AMR cannot seem to turn a profit but then again most of the other airlines merged or filed bankruptcy. AA just purchased all these new planes and it is kind of scary with gas prices going up I hope they can keep in business.. I know I would sure miss my Platinum status and would be devastated to lose all of my miles.
Jul 24, 2011, 8:34 pm
#58
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My thoughts...
Apple should buy AA. iPhones under everyones seat!
It really does amaze me though that AMR cannot seem to turn a profit but then again most of the other airlines merged or filed bankruptcy. AA just purchased all these new planes and it is kind of scary with gas prices going up I hope they can keep in business.. I know I would sure miss my Platinum status and would be devastated to lose all of my miles.
Apple should buy AA. iPhones under everyones seat!
It really does amaze me though that AMR cannot seem to turn a profit but then again most of the other airlines merged or filed bankruptcy. AA just purchased all these new planes and it is kind of scary with gas prices going up I hope they can keep in business.. I know I would sure miss my Platinum status and would be devastated to lose all of my miles.
Jul 25, 2011, 10:08 pm
#59
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AMR has shed another 20 cents today. The stock touched $4.14 and stayed close to that price for the entire trading session.
Anyone care to predict tomorrows performance?
Anyone care to predict tomorrows performance?
Last edited by ByrdluvsAWACO; Jul 26, 2011 at 12:10 am