Whats "UP" with AMR stock ?
- Thread starter NewHampshire Black Bears
- Start date
AMR finished the day up 9.33% for the day and continues to climb in after-hours trading. Not too shabby for the buy-and-hold long-term investors.
http://finance.yahoo.com/q?s=AMR
http://finance.yahoo.com/q?s=AMR
OP
NewHampshire Black Bears
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That's the $$ "Interesting" part, what WILL be the "ceiling" ????
Will there BE one ???
What If the "War chest" swells to $ "5" Billion ???
NH/BB's
Hopeful
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AP
AMR Shares Climb to Fresh 52-Week High
Thursday December 15, 1:41 pm ET
AMR Shares Climb to Fresh 52-Week Peak; Analyst Suggests Company Has 'Hidden Asset Values'
NEW YORK (AP) -- AMR Corp. shares climbed to a fresh 52-week peak Thursday, nudged higher in part by an analyst's suggestion that the company has "hidden asset values" shareholders may not be appreciating.
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"Stripping out the various subsidiaries, it would appear that the market is presently giving AMR credit for just the mainline passenger business," said Bear Stearns analyst David Strine, suggesting in a report that there's something more.
"In our view, AMR could unlock hidden value in many of its business units, whose revenues are currently being valued at mainline airline multiples instead of multiples that correspond with their individual business lines," Strine said.
The "hidden" asset with the highest potential may be American's frequent-flyer program, AAdvantage, he said. Strine values the business at $2 billion to $2.6 billion, or $9 to $11 per share. He laid out several scenarios in which AMR could sell off a noncore business, such as the frequent-flyer program, to pay down debt -- "which would drive upside to the stock's valuation, in our view."
However, the analyst cautioned that risks to his estimates and price target are high -- considering the volatility of the industry -- and could be hurt by changes to air traffic trends, capacity, oil prices and government policy.
Strine set a year-end 2006 price target of $28.
In midday trading, AMR shares gained $1.14, or 5.8 percent, to $20.75 on the New York Stock Exchange, trumping last week's 52-week high of $19.90. The stock, which slumped to a year low of $7.83 in January, is up about 88 percent since the year began.
AMR Shares Climb to Fresh 52-Week High
Thursday December 15, 1:41 pm ET
AMR Shares Climb to Fresh 52-Week Peak; Analyst Suggests Company Has 'Hidden Asset Values'
NEW YORK (AP) -- AMR Corp. shares climbed to a fresh 52-week peak Thursday, nudged higher in part by an analyst's suggestion that the company has "hidden asset values" shareholders may not be appreciating.
ADVERTISEMENT
"Stripping out the various subsidiaries, it would appear that the market is presently giving AMR credit for just the mainline passenger business," said Bear Stearns analyst David Strine, suggesting in a report that there's something more.
"In our view, AMR could unlock hidden value in many of its business units, whose revenues are currently being valued at mainline airline multiples instead of multiples that correspond with their individual business lines," Strine said.
The "hidden" asset with the highest potential may be American's frequent-flyer program, AAdvantage, he said. Strine values the business at $2 billion to $2.6 billion, or $9 to $11 per share. He laid out several scenarios in which AMR could sell off a noncore business, such as the frequent-flyer program, to pay down debt -- "which would drive upside to the stock's valuation, in our view."
However, the analyst cautioned that risks to his estimates and price target are high -- considering the volatility of the industry -- and could be hurt by changes to air traffic trends, capacity, oil prices and government policy.
Strine set a year-end 2006 price target of $28.
In midday trading, AMR shares gained $1.14, or 5.8 percent, to $20.75 on the New York Stock Exchange, trumping last week's 52-week high of $19.90. The stock, which slumped to a year low of $7.83 in January, is up about 88 percent since the year began.
OP
NewHampshire Black Bears
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Well we're not quite there yet(AA $$war chest of 5 Billion)
But I can think of no more LETHAL combination in the US Business scene than
American Airlines....With a War Chest $$$. and ("uncle") Bobby Crandall !!!!!!!!!!
Perhaps 2 out of 3 wont be bad !!
NH/BB's
But I can think of no more LETHAL combination in the US Business scene than
American Airlines....With a War Chest $$$. and ("uncle") Bobby Crandall !!!!!!!!!!
Perhaps 2 out of 3 wont be bad !!
NH/BB's
LGA Fleet Service
Veteran
Crandall isn't coming back.
It's funny to watch everyone scamper around like the Pope is inbound when he flies through here though.You'd think he was still running the place.
It's funny to watch everyone scamper around like the Pope is inbound when he flies through here though.You'd think he was still running the place.
