Upside to AAG

MetalMover

Veteran
Sep 16, 2013
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http://seekingalpha.com/article/1898861-merged-american-airlines-offers-significant-upside-opportunity?source=yahoo
 
One opinion...but read the last two paragraphs which might be of interest to those of us holding stock:
 
In putting together the final touches on my article, it has become apparent that I'm not the only one who thinks that American is extremely undervalued. Multiple analysts who follow this company have put it ontheir top picks list, with near term price targets of between $31 and $39. Analysts are, obviously, not always right, but consensus in opinion is difficult to achieve. Other carriers in this industry remain attractive, especially Delta (DAL), but the upside to American is hard to beat.
Finally, the timing for initiating (or expanding) a long position in American is likely good for the next few months. As part of the reorganization plan that was approved by the bankruptcy court, the creditors have all been made 100% whole, however, the majority of the payments to those creditors are being made in shares of American stock. As those creditors are awarded shares over the next 120 days, many of them will likely sell their positions - leading to downward pressure on equity prices. This downward pressure will reduce after the final equity distribution 120 days after merger close. The reduction in selling activity along with the strong fundamentals will likely start to move the stock substantially higher after April 2014.