Stock Prices/PUPS

[FWAAA]

It's really not an issue of profitable as the bucks come from the shareholders by diluting their share values and not out of any financial stash of the company's.

Yeah, sort of, but not really. Stock distributed to executives is stock not sold by the company for cash, so there really is no functional difference between writing them a check and giving them an equivalent value in stock. It costs the company the same no matter the form of payment.

Couple weeks ago, AMR sold another 27 million shares that netted about $294 million after expenses. That's more money than the three years of PUP/PSP payouts. Over the past several years, AMR has sold a lot of stock to the public. So really, stock handed to execs IS money out of the company's cash stash. 'Cause if the execs hadn't taken it, the company could have sold it (instead of the execs). Money really is fungible.

Details of most recent equity sale: http://www.aa.com/content/amrcorp/pressRel...18_equity.jhtml

 

[eolesen]

Don't rule out another PUP, guys.... On a three year basis, AMR doesn't suck as much as some of the other stocks do...

Symbol	1/3/2006	10/1/2008	Change	Pct
LUV	  16.37	 14.39	-1.98	88%
CAL	  21.27	 16.87	-4.4	79%
RJET	 15.21	 10.07	-5.14	66%
SKYW	 27.06	 15.7	-11.36	58%
ALK	  35.83	 20.78	-15.05	58%
AMR	  22.25	 9.93	-12.32	45%
JBLU	 14.72	 4.99	-9.73	34%
LCC	  37.2	  6.01	-31.19	16%
AAI	  16.26	 2.45	-13.81	15%
HA	   3.75	  0.27	-3.48	7%
MESA	 10.51	 0.35	-10.16	3%
XJT	  8.15	  0.2	-7.95	2%

 

[jimntx]

The chart is baloney.

The percentages are all wrong. For instance, LUV stock went down from 16.37 to 14.39--a change of -1.98. So far so good. However, when I went to school I was taught that the percentage of change was the change divided by the original price, not the ending price divided by the original price. -1.98/16.37 = -0.1209, or a change of -12%, not 88%. The percentage change in AMR stock is -55%, not 45%.

If the chart had said that LUV had retained 88% of its value compared to January, 2006, that would be accurate. However, the point stands as stated. Compared to the other airline stocks, there is probably another PUP payout in AMR's future.

Also, as the song says what a difference a day makes. LCC closed at $4.13/shr today. AMR closed at $6.45/shr. All other airline stocks were down as well. Of course, LUV and CAL were not down as much as the rest of us.

 

[WingNaPrayer]

AMR's price is also after having dropped to a day-low of $5.00 The rebound was fast and furious just before trading ended.

Day Traders - Keep your eye on AMR - there is some money to be made here!