Since the merger AA has spent 11 Billion dollars on share repurchases

[WeAAsles]

http://phx.corporate-ir.net/phoenix...9MCZTUURFU0M9U0VDVElPTl9FTlRJUkUmc3Vic2lkPTU3

 

[AANOTOK]

"As Reuters wrote recently, “Stock buybacks enrich the bosses even when business sags.”


https://www.forbes.com/sites/aalsin...uired-to-vote-on-stock-buybacks/#e2f3b036b1ef

 

[WeAAsles]

"As Reuters wrote recently, “Stock buybacks enrich the bosses even when business sags.”


https://www.forbes.com/sites/aalsin...uired-to-vote-on-stock-buybacks/#e2f3b036b1ef

Nice find. Particularly this piece of the article.

“Consider the case of American Airlines, a company two years out of bankruptcy, facing down $19 billion in debt — and continuing to buy back billions of dollars worth of company stock.

You have to ask: Is that really the best use of company cash? Either way, shareholders should have a say in that.”

 

[jimntx]

Nice find. Particularly this piece of the article.

“Consider the case of American Airlines, a company two years out of bankruptcy, facing down $19 billion in debt — and continuing to buy back billions of dollars worth of company stock.

You have to ask: Is that really the best use of company cash? Either way, shareholders should have a say in that.”

How cute! I find that level of naivete refreshing in someone your age. Do you also believe in Santa Claus? 🙂 (Just joking.)

 

[WeAAsles]

How cute! I find that level of naivete refreshing in someone your age. Do you also believe in Santa Claus? 🙂 (Just joking.)

I believe in the tooth fairy. Well dressing women up like the tooth fairy actually.

 

[jimntx]

OH! Bikinis, high heels, and a nurse's cap, carrying a drill, right!? Kinky!

 

[bob@las-AA]

Weez, you never posted anything financial about the company before, why the sudden interest?

 

[WeAAsles]

Weez, you never posted anything financial about the company before, why the sudden interest?

Always payed attention to their financials Bob. Why do you think I made a huge investment in USAir at $18.50 before the merger.

I used to post their financials often over the years on FB.

 

[eolesen]

Share repurchases are a strategy you either like or hate.

Having too many shareholders and shares outstanding has its downsides. Too many shares, and they're not worth what they could be. It's also an easier road for hostile takeovers.

As an employee, if you still own AAL shares and held them thru the repurchase, the reality is you now own more of the company than you did before the repurchase.

It's also a fairly safe place to park cash when the stock is undervalued. It can always be re-liquiditated if the company is still doing well and the share price improves.

 

[UPNAWAY]

All good points Eolesen, I'd like to see more debt paid down just on a philosophical basis, but one of the reasons they haven't is thy got the debt dirt cheap. Just doesn't make since to throw a lot of money on something at such low interest rates. If any of them are tied to prime and can go up that you will see change quickly if rates go up as most everyone assumes.

 

[eolesen]

Don't disagree on debt reduction, but if stock was issued to settle some of the unsecured shareholder's claims, then the buyback is also in a way reducing debt...