What a coincidence! Stock down after payday!

[Hopeful]

Stock heading down after executive payout!

 

[FWAAA]

There's pathetic grasping at straws in attempts to rant and rave, and then there's this thread.

At this moment, not only is AMR down about 1% on the day, but so are LUV, UAUA and LCC.

Check the price of oil? B)

 

[Hopeful]

There's pathetic grasping at straws in attempts to rant and rave, and then there's this thread.

At this moment, not only is AMR down about 1% on the day, but so are LUV, UAUA and LCC.

Check the price of oil? B)

I could care less about LUV, UAUA and LCC..

And in the past AMR's stock has gone up even while oil had gone up..
Any company can control both positive and negative information and release it the financial community and have an effect on the stock price.

The company needs to start painting a not so rosy picture in time for contract negotiations.

 

[FWAAA]

I could care less about LUV, UAUA and LCC..

And in the past AMR's stock has gone up even while oil had gone up..

Any company can control both positive and negative information and release it the financial community and have an effect on the stock price.

The company needs to start painting a not so rosy picture in time for contract negotiations.

WTF? So you think the company manipulates the stock price (or attempts to manipulate the price)? Uh-huh.

Here's what's ailing airline stocks today, for those not permanent residents of Fantasyland:

http://investing.reuters.co.uk/news/articl...MARKETS-OIL.xml

 

[FrugalFlyerv2.0]

Stock heading down after executive payout!

... ... ... must...kick...dead...horse... ... ...

 

[eolesen]

I could care less about LUV, UAUA and LCC..

Probably unwise on your part, considering AMR's performance relative to those stocks is what triggered the payouts in the first place.

The market reaction to higher oil is just one reason airline stocks got trashed today. Last week, the Dow hit a record 12,919, and obviously some people felt it was time to start to cash out.

Delta's earnings were also released this morning, further confirming that domestic yields pretty much suck right now. Look at LUV from last week, and you'll see a downward push from the 19th, which is when they reported their earnings.

And, as the attached from Bloomberg says, it wasn't just airline stocks. Everyone got hammered today.

U.S. Stocks Fall as Crude Oil Advances; Dow Drops From Record

By Nick Baker

April 23 (Bloomberg) -- U.S. stocks fell after crude oil rose and concern mounted that home loan defaults will accelerate, overshadowing the biggest day for takeovers since 2000.

Wal-Mart Stores Inc., the world's largest retailer, led the Dow Jones Industrial Average's retreat from a record as higher fuel prices threatened to reduce consumer spending. Countrywide Financial Corp. pushed financial shares lower after the nation's biggest mortgage lender said regulators may force more homeowners into foreclosures through tighter borrowing guidelines.

Stocks also declined after Moody's Investors Service increased its loss estimates on subprime mortgages. The Standard & Poor's 500 Index rebounded as much as 8 percent from its 2007 low in part on speculation the home-loan delinquencies would not drag down the rest of the economy.

``We're pretty cautious right now,'' said Kevin Myeroff, who oversees $1 billion as chief executive officer of NCA Financial Planners in Cleveland. ``There's too much exuberance at the moment. The market has gone a little higher than it should.''

The Dow industrials posted its first drop in eight days, slipping 42.58, or 0.3 percent, to 12,919.40. The measure earlier climbed within 17 points of reaching 13,000 for the first time. The S&P 500 fell 3.42, or 0.2 percent, to 1480.93. The Nasdaq Composite Index decreased 2.72, or 0.1 percent, to 2523.67.

Better-than-expected economic and profit reports and a record pace of mergers and acquisitions last week pushed the Dow to all-time highs and the S&P 500 and Nasdaq to six-year highs.

Announced takeovers today totaled more than $130 billion worldwide, the most since Jan. 10, 2000, when America Online Inc. agreed to buy Time Warner Inc. for $186 billion, according to data compiled by Bloomberg.

`Combination'

``The combination of having those positive earnings relative to where the Street was a month ago, as well as the continued money flow into buying a new company, is really helping the market,'' said Wayne Wicker, chief investment officer of Vantagepoint Funds in Washington.

Treasuries rose for the first time in three days and the dollar weakened against the yen.

About 10 stocks declined for every nine that advanced on the New York Stock Exchange. Some 1.44 billion shares changed hands on the Big Board, 9.5 percent less than the three-month average.

Crude oil gained 2.8 percent to $65.89 a barrel in New York on concern shipments from Nigeria, Africa's biggest producer, may be disrupted as complaints about the country's presidential election spawn more violence.

Higher fuel costs may hamper consumer spending, which accounts for two-thirds of the U.S. economy. Wal-Mart fell 83 cents to $48.93. Its 1.7 percent loss was the most this month.

Subprime Loans

Banking regulators may exacerbate delinquencies among borrowers with questionable credit histories by making it tougher to refinance subprime mortgages, Angelo Mozilo, chief executive officer of Countrywide, said in an interview.

Losses on subprime mortgages made last year will be 6 percent to 8 percent of the loan principal, Moody's estimates, up from the credit rating company's previous forecast of 5.5 percent to 6 percent.

Countrywide lost $1.11, or 3 percent, to $36.25 for its steepest decline since March 27. D.R. Horton Inc., the second- largest U.S. homebuilder, fell 80 cents, or 3.4 percent, to $22.59 for the steepest loss since March 13.

Banks in the S&P 500 retreated 0.9 percent, contributing the most to the benchmark index's drop among two dozen industries.

Bank of America Purchase

Bank of America Corp. decreased 53 cents to $50.51. The second-largest U.S. lender agreed to buy ABN Amro Holding NV's LaSalle unit for $21 billion in cash, making it the largest bank in Chicago and filling one of the few remaining holes in the nation's most extensive branch network.

Britain's Barclays Plc will buy the rest of ABN Amro for 67 million euros ($91 billion) in the world's biggest financial- services acquisition.

Elsewhere, MedImmune Inc. soared $8.56, or 18 percent, to $56.57 for the best performance in the S&P 500. AstraZeneca Plc, struggling to develop new medicines, agreed to buy MedImmune for $58 a share in cash to gain flu vaccines and an antiviral treatment for babies. MedImmune put itself up for sale after pressure from Carl Icahn and other shareholders.

Semiconductor stocks retreated after analysts said sales at Cisco Systems Inc., the world's biggest maker of computer- networking equipment, are slowing. Also, Applied Micro Circuits Corp., a maker of semiconductors for communications equipment, plunged the most since October 2000 after saying quarterly sales missed its forecast.

Chip stocks in the S&P 500 declined 0.9 percent, the second- steepest loss among 24 industry groups.

Cisco

Shares of Cisco lost 41 cents to $26.58. ``The deceleration that Cisco witnessed in its U.S. enterprise business during the January quarter has continued into its April quarter,'' wrote JMP Securities LLC analyst Samuel Wilson.

The analyst recommended investors remain cautious, saying Cisco's stock is expensive compared to its technology rivals and analysts' earnings estimates are ``too optimistic.''

Applied Micro slumped 80 cents, or 23 percent, to $2.73. Sales probably dropped 8.5 percent from the third quarter, to about $70 million, the company said.

An analyst upgrade on International Business Machines Corp. kept the Dow industrials from falling more.

IBM gained 63 cents, or 0.7 percent, to $95.21 for the Dow average's biggest advance. The world's biggest computer-services company may benefit from a weaker U.S. dollar, according to analysts at Lehman Brothers Holdings Inc., who upgraded the stock to ``overweight'' from ``equal weight.''

More Upgrades

Goldman Sachs Group Inc. led brokerages higher after Merrill Lynch & Co. advised buying shares of its four Wall Street rivals. Guy Moszkowski, the top-ranked financial services analyst by Institutional Investor magazine, raised his ratings on brokerages two months after lowering them, saying the disruption in customers' risk appetite was ``short-lived.''

Goldman Sachs climbed $2.42 to $222.42 and Morgan Stanley added 65 cents to $83.56. Bear Stearns Cos. climbed 70 cents to $157.30. Lehman Brothers Holdings Inc. lost 32 cents to $77.82 even after it was upgraded to ``buy'' from ``neutral.''

Hasbro Inc. climbed $2.33 to $32.54. The world's second- largest toymaker reported first-quarter profit that beat analysts' estimates as demand for Spider-Man toys and Play-Doh clay spurred the biggest sales gain in almost eight years. Net income of 19 cents a share topped estimates for profit of 1 cent.

Profits at S&P 500 companies increased 6.2 percent in the first quarter, according to analyst estimates compiled April 20 by Bloomberg. A week prior, growth of 3.1 percent was projected.

S&P 500 at 1550?

Banc of America Securities LLC predicted the S&P 500 will reach 1550 in the next year. Earnings from continuing operations for S&P 500 companies will be $92 per share in 2007, $1 higher than earlier predicted, said Thomas McManus, chief investment strategist at Banc of America.

``Despite our ongoing concern regarding the prospects for a downshift of consumer discretionary spending in 2007 and the likely negative effect on earnings, the slowdown is occurring more gradually than expected,'' McManus wrote.

The Russell 2000 Index, a benchmark for companies with a median market value of $683 million, lost 0.2 percent to 827.55. The Dow Jones Wilshire 5000 Index, the broadest measure of U.S. shares, retreated 0.2 percent to 14,983.85. Based on its decline, the value of stocks decreased by $32.6 billion.

 

[Hopeful]

WTF? So you think the company manipulates the stock price (or attempts to manipulate the price)? Uh-huh.

Here's what's ailing airline stocks today, for those not permanent residents of Fantasyland:

http://investing.reuters.co.uk/news/articl...MARKETS-OIL.xml

Can you say "ENRON"

 

[eolesen]

Nice try. Did AMR also manage to get Walmart, DR Horton, and Hasbro to fudge their results too?...

 

[UAL_TECH]

Creative accounting practices are not an 'unusual' occurrence and stock manipulation is not uncommon.

To say it "can’t" be done or to infer that it "isn’t" being applied is being disingenuous on your part.

To state so ‘without doubt’ one way or the other is not substantiated.

Feel free to correct me if my inference is incorrect.

B) UT

 

[Hopeful]

Nice try. Did AMR also manage to get Walmart, DR Horton, and Hasbro to fudge their results too?...

I SUPPOSE THERE ARE NO CORPORATE EXECUTIVES SERVING PRISON TIME THROUGHOUT THE US! THEY'RE ALL THERE FOR TRAFFIC VIOLATIONS! I GUESS WHEN CRANDALL CALLED BRANIFF'S PUTNAM ON THE PHONE TO GET HIM TO RAISE FARES WHICH CRANDALL WOULD MATCH, HE WAS MISUNDERSTOOD AND THE FACT THAT PUTNAM TAPED THE CALL WAS A RESULT OF HITTING THE WRONG BUTTON.


TALK ABOUT LIVING IN FANTASY LAND!




Did I imply that? And I never stated that AMR fudged any results. I said they, like any other corporation, can release and control information to financial community that can paint a rosy picture to drive the stock up when they need to....I.E.WHEN THE EXECUTIVES WANT TO EXCERCISE THEIR OPTIONS...

By the same token, they can release negative information when they need to, I.E CONTRACT NEGOTIATIONS WITH THE UNIONS!

FWAAA seems to believe that corporations and their executives are ALL on the up and up and are above doing anything illegal or immoral.

I used ENRON as an example of feeding mis-information to investors. So please don't tell me AMR is incapable of the same practices.
as UAL TECH posted, "Creative Accounting" practices are not that unusual.

It amazes me that you guys put Arpey and Co. on the same pedestal as Mother Teresa. ABSOLUTELY MIND BOGGLING.


Did you guys notice Arpey and Company selling some of their options? I guess they need they needed the money to pay bills!


Oh, tell me FWAAA and EOLESEN, since you guys are financial whizzes, tell me HOW Arpey needs to diversify his holdings and a low level mechanic like me just doesn't understand the business world as much as you two boy wonders.

There was a time when a CEO and top executive dumped stock in his own company, it was a sign of no confidence and was frowned upon. They usually didn't cash out until they left the company.

 

[Oneflyer]

Considering Arpey got paid out in stock. Why would he try to drive down the stock price the day after he got paid? Wouldn't he want to pump it up for a couple of months while he sold out, then try to push it down.

 

[Hopeful]

Considering Arpey got paid out in stock. Why would he try to drive down the stock price the day after he got paid? Wouldn't he want to pump it up for a couple of months while he sold out, then try to push it down.

Either because it was artificially inflated, or he can re purchase the stock at several or more dollars cheaper.

I guess he needed the money to pay bills


AP
AMR Chairman and CEO Exercises Options
Monday April 23, 4:18 pm ET
AMR Chairman, President and CEO Gerard J. Arpey Exercises Options for 49,363 Shares

NEW YORK (AP) -- The chairman, president and chief executive of American Airlines parent AMR Corp. exercised options for 49,363 shares of common stock, according to a Securities and Exchange Commission filing.

In a Form 4 filed with the SEC Friday, Gerard J. Arpey reported he exercised the options Thursday for $8.88 apiece and then sold all 49,363 of them on the same day for $30.64 apiece. Arpey sold an additional 207,900 shares on the same day for $29.74 apiece.

Insiders file Form 4s with the SEC to report transactions in their companies' shares. Open market purchases and sales must be reported within two business days of the transaction.

AMR is based in Fort Worth, Texas.

 

[Hopeful]

AP
AMR Chief Financial Officer Sells Shares
Monday April 23, 4:16 pm ET
AMR Chief Financial Officer Thomas W. Horton Sells 33,000 Shares

NEW YORK (AP) -- The chief financial officer of American Airlines parent AMR Corp. sold 33,000 shares of common stock, according to a Securities and Exchange Commission filing.

In a Form 4 filed with the SEC Friday, Thomas W. Horton reported he sold the shares Thursday for $29.41 and $30.62 apiece.

Insiders file Form 4s with the SEC to report transactions in their companies' shares. Open market purchases and sales must be reported within two business days of the transaction.

AMR is based in Fort Worth, Texas.

 

[Oneflyer]

Either because it was artificially inflated, or he can re purchase the stock at several or more dollars cheaper.

I guess he needed the money to pay bills
AP
AMR Chairman and CEO Exercises Options
Monday April 23, 4:18 pm ET
AMR Chairman, President and CEO Gerard J. Arpey Exercises Options for 49,363 Shares

NEW YORK (AP) -- The chairman, president and chief executive of American Airlines parent AMR Corp. exercised options for 49,363 shares of common stock, according to a Securities and Exchange Commission filing.

In a Form 4 filed with the SEC Friday, Gerard J. Arpey reported he exercised the options Thursday for $8.88 apiece and then sold all 49,363 of them on the same day for $30.64 apiece. Arpey sold an additional 207,900 shares on the same day for $29.74 apiece.

Insiders file Form 4s with the SEC to report transactions in their companies' shares. Open market purchases and sales must be reported within two business days of the transaction.

AMR is based in Fort Worth, Texas.

So he sold at $29.74, so he could buy it back at like $27. Are you forgetting that he has a ton of options in the single digit range? He couldn't ever make more money by driving the stock down. On a personal level, Arpey always wants the stock to go up. If the stock was at fifty, I would buy in to your arguement, but not with it bouncing all over the place.

 

[Hopeful]

So he sold at $29.74, so he could buy it back at like $27. Are you forgetting that he has a ton of options in the single digit range? He couldn't ever make more money by driving the stock down. On a personal level, Arpey always wants the stock to go up. If the stock was at fifty, I would buy in to your arguement, but not with it bouncing all over the place.

Then why sell ANY STOCK IN THE COMPANY THAT YOU RUN?Y

Oh yea,,,,DIVERSIFY, DIVERSIFY, DIVERSIFY!

So he sold at $29.74, so he could buy it back at like $27. Are you forgetting that he has a ton of options in the single digit range? He couldn't ever make more money by driving the stock down. On a personal level, Arpey always wants the stock to go up. If the stock was at fifty, I would buy in to your arguement, but not with it bouncing all over the place.

In a Form 4 filed with the SEC Friday, Gerard J. Arpey reported he exercised the options Thursday for $8.88 apiece and then sold all 49,363 of them on the same day for $30.64 apiece. Arpey sold an additional 207,900 shares on the same day for $29.74 apiece.





$8.88 looks like single digits to me