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$8.30 -0.94 (-10.17%)
10/6/2008 4:02 PM

AMR Corp (AMR)

CAPS Rating:
*

The Company's operations fall almost entirely in the airline industry.

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Avatar TMFMileHigh (30.83) Submitted: 4/19/08 8:48 AM : Underperform Start Price: $8.82 AMR Score: -19.87

OK, so the airlines business is, on the whole, awful. AMR gets my vote for today's screaming short for three reasons:

1. Labor problems. Pilots are taking ads out in the paper pointing fingers at management for customer service failures just as executives try to defend a ludicrous bonus plan. Accountability to the customer? To shareholders? Who needs that?

2. Fuel prices. Oil over $114 a barrel as I write.

3. Lost revenue. Canceled flights. Customer defections. Overtime for MD-80 repairs. How is this not going to cost at least $50 million?

And, finally, there's the matter of a forthcoming FAA fine, which I suspect will be huge.

More here: http://www.fool.com/investing/general/2008/04/10/americans-lose-their-way.aspx

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