American Airlines Group, Inc. (NASDAQOTH:AAMRQ.DL)

CAPS Rating: No stars


Player Avatar bburr4307 (< 20) Submitted: 12/27/2011 6:44:18 PM : Outperform Start Price: $0.56 AAMRQ.DL Score: -58.27

As cheap as the stock is at this point there is nowhere for it to go but up. After they renegotiate their contracts and get a little farther forward on aquiring the new aircraft they will come out of bankruptcy in much better shape and the stock will go up at least ten fold, probably more. Remember this stock was at $9.00 earlier this year and over $6.00 in November This will be the best thing that has happened to AMR in awhile. Lets just hope they don't merge with USAir to soon, that could put a kabash on the whole outperform thing in a hurry. By the way, I've backed my prediction by investing in AMR. Got it for 0.33 a share the day after they declared. I can wait for awhile for it to go up and I'll make a killing doing it. I figure a year to 2 years, depending on how long they are in bankruptcy. It's a win/win situation. Have to remember this is a REORGANIZATION not a default situation, they're not going out of business, hell, Obama would probably declare them to big to fail and bail them out. The government can't afford to lose the tax revenue they generate and putting that many people out of work in this economy would not look good.

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Member Avatar busterjde (< 20) Submitted: 1/3/2012 11:19:37 AM
Recs: 1

The thing is they may take these shares completely off the market and then issue new shares once the company emerges from bankruptcy. I'm not sure that people who own shares now will get anything at all.

Member Avatar puccini3005 (29.85) Submitted: 1/3/2012 12:31:44 PM
Recs: 0

I think buster is probably right. AMR's not sure about it either:
May be time to bail, if you haven't already...

Member Avatar toneill69 (< 20) Submitted: 1/4/2012 10:12:59 PM
Recs: 0

If i bail out i lock in a 50k loss, the way bburr states it is the way it ought to be particularly with the statements of the company.
There are many shareholders who are customers, I am a 1 million mile advantage member, but there is a good chance buster is correct - that we have been taken for a ride. Can shareholders not revolt, how come we are real patsies. Can shareholders fire the board ceos and just liquidate this thing. With $25 billion in assets surely they can set aside a billion for shareholder if only to stop them from being spoilers. Could shareholders collectively do that. It is sickiening to compare Copa a small Central American airline that is a pion compared with AMR but a giant when it comes to operations, profitability and success for shareholders. It seems that the entire AMR company has been hijaced for the benefit of management, financial wizards and unions. Where are they going to get new shareholders ? It seems shareholders have to be spoilers in order get their fair share, its exaclty what the unions have done- hard to respect their position- they surely did not give a damn about my retirement , which should i care about theirs.

Member Avatar puccini3005 (29.85) Submitted: 1/5/2012 2:58:51 PM
Recs: 0

Toneill - I apologize, I didn't mean to sound flippant, a 50k loss is no small matter and I hate to hear it... I was more speaking to bburr who can still probably get out of a speculative .33/share bet with a gain. For your sake I hope he is right, but it would be far from typical. The Dynegy situation was the only time I've seen something like that, where you have Carl Ichahn throwing punches on behalf of shareholders. From what I understand, they bent the heck out of some unusually soft rules to do it, and there were of course losers in that game too - bondholders - what Icahn did to them was downright criminal, IMO. I'm no investing professional, perhaps you could seek advice from one on what to do with a huge position in a huge company that now trades on the pink sheets. Best of luck to you.

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