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American Airlines down to .26 cents a share...

Posted on 11/29/11 at 9:29 pm
Posted by Tim
Texas
Member since Jan 2005
7062 posts
Posted on 11/29/11 at 9:29 pm
down from what looked like a high of $8 this year...Buy or not? Might be worth buying a couple thousand shares? What you folks think?
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26591 posts
Posted on 11/29/11 at 9:32 pm to
Hell no.

They don't even have enough money to pay back their debt. What makes you think there's any equity left?
Posted by TulaneLSU
Member since Aug 2003
Member since Dec 2007
13298 posts
Posted on 12/2/11 at 10:58 am to
I hope you jumped on this on Tuesday as I did.

Stock is up 46% to 38 cents/share. Made 4600 on a 10K investment in three days thanks to your post.
Posted by Rohan2Reed
Member since Nov 2003
75674 posts
Posted on 12/2/11 at 3:08 pm to
Posted by TulaneLSU
Member since Aug 2003
Member since Dec 2007
13298 posts
Posted on 12/7/11 at 6:11 am to
I am going to put another few thousand in AMR this morning as soon as trading opens. I have no idea what I'm doing, at least when it comes to "fundamentals," as I've stated before, but I've done pretty well with whatever unwritten algorithm I've come up with in my mind.

The stock market and meteorology are very similar. I seem to do well at both, for the most part. And I've found, with most things, the deeper one gets in jargon, the more the person using the jargon is saying he doesn't understand whatever he's describing. It's like that in philosophy, meteorology, molecular biology, theology, and the stock market. Jargon becomes our language when we don't know what we want to say or how to say it. I admit to being ignorant, so I try not to use jargon. Ships ahoy and happy flying, American. I hope if you decide to invest in American you do so for good reasons, not because of what I've said, and I hope whatever you do, you make a nice profit and use that profit to make the world better.

Good morning, Money Talk.
Posted by SM6
Georgia
Member since Jul 2008
8804 posts
Posted on 12/7/11 at 9:59 am to
Airlines are a great way to lose a ton of money for the opportunity to make meager returns.

I made a profit off of Republic last year (RJet) before the Frontier purchase had a chance to drag them down. I bought it right after they posted a loss due to one time write-offs related to the merger, and sold it right after the Summer earnings came out. (Summer is typically a boon for airlines, winter they can lose a lot of money due to weather cancellations)

Playing the airlines is betting on the cycle. AMR at .26, if you don't mind holding it for a year + can be a good play. The CH. 11 will allow them to renegotiate their very disadvantagous labor contracts. The key is for them to be able to spin off American Eagle and start replacing their fuel guzzling Super 80s (MD-82/3) which form a large part of their domestic fleet.
Posted by LSURussian
Member since Feb 2005
127310 posts
Posted on 5/6/13 at 9:49 am to
quote:

American Airlines down to .26 cents a share...
Way overpriced....
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