The New American Airlines Goes for the Gold

[700UW]

http://online.barrons.com/article/SB50001424053111903506304579375173674237240.html#articleTabs_article%3D1

 

Expect a few bumps as American Airlines Group shares ascend toward cruising altitude over the next 12 months. But don't let that prospect keep you from investing.
 
Since December, when American emerged from bankruptcy and combined with US Airways, its new stock (ticker: AAL) has risen 42%, almost four times the airline industry's 11% gain in that time. Bullish investors have focused on the fact that the reorganization will clear away $19.6 billion in the old American's debt, and that the merger has created the world's largest airline, with a nice balance of domestic (57% of revenue) and international services, and lots of opportunities to boost revenue and trim costs. Most importantly, it's another step, a giant one, in the consolidation of the U.S. airline industry—United is now linked to Continental, Delta Air Lines (DAL) to Northwest, and Southwest Airlines (LUV) to Airtran—which should provide the pricing stability that has long eluded the volatile industry.
 

 

 

[wings396]

It's only a matter of time before the long winded analysis on this comes along. I'm sure that this news is all built on false hopes and dreams, and that some "Other" carrier has/will, or is going to be better in every way possible....

 

[Rogallo]

So why do you encourage a reply???

 

[Jacobin777]

From the article:
 
"Sass believes that American Airlines shares could be worth $53 in a couple of years."
 
Maybe Mr. Sass should put more money where his mouth is. I wouldn't be surprised if he nor his family even have one share of AAL stock.
 
I also don't believe AA's current stock price is sustainable.

 

[robbedagain]

if they don't get labor fixed now they aint gonna see them synergies

 

[wings396]

So why do you encourage a reply???

Because I know by now that one is coming regardless. Do you really think that anything positive by anyone other than the Almighty carrier is going to slip by without being topped?

 

[Barfbag]

More lipstick on the pig...