AMR stock...Good Buy? or Good By?
- Thread starter odie01
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Frank Szabo
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I tried some options - cheaper.
I've said it before, and I'll say it again. The time to buy AMR was in February-May, 2003 when it was obvious that Carty (and then Arpey) wanted to force concessions on the employees without a Ch 11 filing. At its low, it could had for $1.25/sh. The day the concessions were declared to be in effect, it was $5/sh. By January, 2007, it was $41/sh.
Think it might happen again? IMO, it would be delusional to think that kind of lightning would strike twice. But if you have $1,000 or so that's in your "throw it away on the next trip to Las Vegas" fund, there are probably worse bets than on Arpey and AMR. Hate him for being such a greedy bastard, but he and the other execs did preserve the stock.
Personally, I think the odds of an AMR turnaround without a Ch 11 filing are a million to one. And a Ch 11 filing results in the stock being worthless.
Think it might happen again? IMO, it would be delusional to think that kind of lightning would strike twice. But if you have $1,000 or so that's in your "throw it away on the next trip to Las Vegas" fund, there are probably worse bets than on Arpey and AMR. Hate him for being such a greedy bastard, but he and the other execs did preserve the stock.
Personally, I think the odds of an AMR turnaround without a Ch 11 filing are a million to one. And a Ch 11 filing results in the stock being worthless.
Frank Szabo
Veteran
Very true, but you are referring to BUYING the stock.
I bought 10 contracts @ $.40 per - that limits my downside but lets the upside fall where it may. Even a $.02 cent rise in the option price pays for Scottrade's $7.00 commission and buys me a six-pack.
Not really too sure what good "preserving the stock" does when the entire workforce is madder than 75,000 wet hens, so to speak. Alienating the very people management says it depends on to make the organization shine is not very good business practice and never has been up until relatively recently (that seems to be what's taught in business schools anymore).
People may not have a string of degrees like one would hear rattled off during a PTA meeting, but they really aren't that dumb as a whole - many simply don't have a printed sheet of paper from a third party attesting to their so-called "intelligence".
As for the turnaround odds being "A Million to One" - you're making the assumption the BOD wants to turn this ship around. A turnaround would be rather easy to accomplish but considering the lies of the past by the company and union a good-faith gesture must be made by the company - telling the twu to go to hell with respect to running the business and providing them income via maximum dues collections would be a good start.
Some movement toward the workers' wage and benefit position might garner much more support than its book cost, but again, that is something only a real businessperson would realize - not the trash we have presently in Centrepork that understand nothing but a balance sheet and bonuses.
TWU informer
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AMR Stock at $2.16 ??
That's Tulsa's Fault
That's Tulsa's Fault
Frank Szabo
Veteran
Naw - it's Bush's fault.
Frank Szabo
Veteran
There are a number of people I'd love to skin alive over that deal - maybe do the Vlad-on-a-stick thing after the skinning if I''m not too tired.
MCI transplant
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<_<------ Obama has had two years to put it right, and done nothing but through more money at it!!!
Frank Szabo
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It really doesn't matter.
Those at the top of the food chain have no intention of representing those who voted for them, regardless of party. Political parties exist only to give the uninformed something to argue about while the politicians of both flavors conspire to screw over the electorate.
You sound as jaded as my students. Yet as they point out, unions will continue to shovel money at Democrats (money confiscated from their union "brothers" and "sisters"), oblivious to the fact that Democrats couldn't care less about the plight of working men and women. As others have pointed out, the Republicans make no secret of their disdain.
Perhaps the unions should withhold their funding from the Democrats for the next election cycle. Loss of funds might get their attention.
enough already
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If only we had the control to withold those funds....
MCI transplant
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<_< ------- You are a smart man Charley Brown!!! But just throwing money at a problem hasn't done a damn thing except put our kids, and grand kids, deeper in dept!!!
Im sure you know you have the power to withhold your portion of the funds they spend on politics ala agency fee, but do you have the will?
