Buy US Airways and AMR, Says JPMorgan

[usa1]

Buy US Airways and AMR, Says JPMorgan

http://blogs.barrons.com/stockstowatchtoday/2013/02/21/buy-us-airways-and-amr-says-jpmorgan/

 

[signals]

AAMRQ seems like a real bargain right now. I actually tend to agree with this one.

 

[usa1]

Which stock ticker survives?

 

[wings396]

Neither, it will be a new symbol.

 

[autofixer]

That would be a sure way to lose money; buy a single stock, especially an airline stock. Have at it if you've got the guts.

 

[FWAAA]

Jamie Baker of JP Morgan Chase is the idiot analyst who didn't warn his clients that AMR was on the brink of bankruptcy in October and November, 2011. Instead he told them that AMR had plenty of cash and that bankruptcy wasn't on the immediate horizon. Whoops.

I'd follow his advice only with money that's left over after your lottery ticket budget has been satisfied.

 

[usa1]

I thank Jamie was right. AA flying high again already. Makes you wonder about this BK?

 

[PullUp]

Anybody that buys a pink sheet stock is a fool. AMR's common stock will be cancelled at the close of BK, just like USAirways' stock was - twice. New AA stock will be issued to the secured creditors. Common stock holders are unsecured.
Sometimes 69 cents/share is not a good deal.
Cheers.

 

[mrbreeze]

Anybody that buys a pink sheet stock is a fool. AMR's common stock will be cancelled at the close of BK, just like USAirways' stock was - twice. New AA stock will be issued to the secured creditors. Common stock holders are unsecured.
Sometimes 69 cents/share is not a good deal.
Cheers.

I played the AAMRQ stock through my Brokerage link account in my 401k. Over the last 3 months, I made over a $90k profit. 😉

It's all in the timing......don't think I would buy it now, tho.
breeze

 

[FWAAA]

Anybody that buys a pink sheet stock is a fool. AMR's common stock will be cancelled at the close of BK, just like USAirways' stock was - twice. New AA stock will be issued to the secured creditors. Common stock holders are unsecured.
Sometimes 69 cents/share is not a good deal.
Cheers.

Ordinarily, that's exactly correct. But in this case, because AA didn't cut costs far enough (and there wasn't enough unsecured debt to discharge), there's more than enough new stock to make the creditors whole (according to Parker and Horton) and thus, the old AMR stock will get "at least" 3.5% of the new company, or roughly a dollar a share, according to most estimates. It's unprecedented that a legacy airline's creditors will be made whole in bankruptcy.

 

[Salty Dog]

What about the 200 shares that they "gave" us?