AMR Stock Climbing

[Bill]

I was just curious as to what your opinion is on the rising price of the AMR stock. No need to get into any debates or any other union against union crap. Save that for another thread.

What's your take on it?

Some folk I've talked to think it's going to go much higher. Are analysts blowing smoke up our a**es or are the times a changin'?

What's your take on it?????

 

[FWAAA]

The stock of UAL, NW, and DL are all going to be canceled. Stock in those airlines will be given to the current creditors and investors who inject new money. Even if oil falls, their stock will still be canceled, so there's no way to profit (as an investor) by buying their stock. The only stock that looks permanent right now belongs to CO and AA.

On the other hand, the stock of CO and AA are not in danger of being canceled, and with oil down to $56 today (and probably dropping further), CO and AA are poised to begin showing profits unless oil spikes back upward. Why does it matter that AA and CO stock aren't gonna be canceled? They are the only legacy airline stocks (along with LCC) that allow someone to participate in the declining price of oil and the profit potential that may bring.

AA announced yesterday that it is selling about $250 million worth of common stock today due to the high price - that helps even more, since that money can help cover AA's maturing debt.

In short, AA may very well be coming out of the woods, and investors don't want to be left behind.

LCC (new USAir stock) is over $35/share. No reason that AA's stock can't get to $30 or $40 in the next year.

If fuel had cost AA the same in the third quarter as it did in the third quarter of 2002, AA would have earned about a billion dollars in the third quarter alone. 😱

Investors like them odds. If oil gets back to reasonable prices, AA is poised to profit like never before.

That's why AA's stock is rising rapidly. As well as LCC and CO. My guess is that $30 or $40 may very well happen.

 

[TWU informer]

I believe record profits are on the horizon.

That will equate to higher stock prices also.

Barring another terrorist attack or horrific accident, AA is well on its way to recovery that will be unprecedented.

The question is, what plans are there regarding industry consolidation that could also have an effect on stock price, both negative and positive.

 

[local 12 proud]

sure am glad I decided to hang onto my shares

 

[FWAAA]

What's really something is how WN has remained relatively flat despite the prospect of a recovery. B6 is still languishing around $19. Of course, B6 posted a pre-tax LOSS last quarter, and things don't look much better for it in the fourth quarter, with its costs continuing to climb.

 

[Connected1]

WN's high earnings multiple leaves them nowhere to go but down. I think there are a lot of investors out there who had their money in WN just to keep a foot in the airline game. If things continue to turn around, WN won't be the only "investable" name out there and you'll see further rotation out of its stock and into other healthy airlines.

 

[Bob Owens]

Well unless it hits $300 per share we got screwed.

 

[High Speed Steel]

It is nice to see some improvement. Hope this is a sign of some sustained stability to our airline.

 

[Garfield1966]

Well unless it hits $300 per share we got screwed.

blah blah blah

 

[aafsc]

Well unless it hits $300 per share we got screwed.

It is possible. Although unlikely anytime soon. UAL stock at one time traded at $294 per share. This was on 9/5/89.

 

[PRINCESS KIDAGAKASH]

For every winner in today's stock market there has to be a loser. The stock market has become nothing but a get rich quick scheme, thanks to internet day traders and "knucklehead" analysts. The stock market used to work like this: Person would buy stock in a company and hold on to it sometimes for several years. The company would take that money and invest in new manufacturing plants,R+D,employees,etc. The idea was the company would grow and get bigger, which used to mean more profit and a dividend for the stockholder. Now a person buys stock in a company and sells it the second one stupid "analyst" says something stupid about that particular company or industry. People used to put their stock certificates in a safe. Now day traders sell a stock seconds after they bought it. This is not investing. It is nothing but gambling. The stock market is now just another casino.

 

[777 fixer]

For every winner in today's stock market there has to be a loser. The stock market has become nothing but a get rich quick scheme, thanks to internet day traders and "knucklehead" analysts. The stock market used to work like this: Person would buy stock in a company and hold on to it sometimes for several years. The company would take that money and invest in new manufacturing plants,R+D,employees,etc. The idea was the company would grow and get bigger, which used to mean more profit and a dividend for the stockholder. Now a person buys stock in a company and sells it the second one stupid "analyst" says something stupid about that particular company or industry. People used to put their stock certificates in a safe. Now day traders sell a stock seconds after they bought it. This is not investing. It is nothing but gambling. The stock market is now just another casino.

If you sell your stock based on what one "stupid" analyst says that means that your not to bright.

 

[Bob Owens]

It is possible. Although unlikely anytime soon. UAL stock at one time traded at $294 per share. This was on 9/5/89.

Unlikely anytime period.

 

[eolesen]

Princess, for what it's worth, AMR is largely institutionally owned, so day traders aren't really manipulating its stock price to the degree that you might see with some of the sexier get-rich-quick stocks.

WN's stock has been languishing for about five years, mainly because they have almost 800 million shares outstanding right now, compared to "only" 165 million for AMR. That means that earnings per share are naturally going to be low for someone holding LUV. Granted, LUV's earnings have been many times more than AMR's, but that too may be coming to an end as their hedging advantage wanes and if crack spreads continue to remain where they are today.

 

[Bob Owens]

Princess, for what it's worth, AMR is largely institutionally owned, so day traders aren't really manipulating its stock price to the degree that you might see with some of the sexier get-rich-quick stocks.

WN's stock has been languishing for about five years, mainly because they have almost 800 million shares outstanding right now, compared to "only" 165 million for AMR. That means that earnings per share are naturally going to be low for someone holding LUV. Granted, LUV's earnings have been many times more than AMR's, but that too may be coming to an end as their hedging advantage wanes and if crack spreads continue to remain where they are today.

Didnt AMR buy back something like $1 billion worth of stock a few years back?

It would be nice to see exactly what "Institutions" own the bulk of AMR stock.

If AMR only has 165 million shares out there, times $17/share, that means that the whole company could be bought for $2.8 billion. Controlling interest could be bought for a little over $1.4 billion. Is AMR going to be purchased by Brittish?