AMR Corp (AMR)
The Company's operations fall almost entirely in the airline industry.
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oil prices should begin to fall and AMR will directly benefit from strong network domestic and international
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AMR is over sold, Management is reducint number of non profit flights, extra fees are being applied to all items that cause a plane to use extra fuel. The company is going to be lean and mean in the near future.
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Hello, it's an AIRLINE.
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Dropping oil prices and the ability to raise prices should help the airline sector.
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short term bottom
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The only major airline to avoid bankruptcy, avoiding it by severe cost-cutting to be lean and mean. It is also the only major not interested in a merger, which always bogs down airlines for years and never yields near the level of benefits it touted.
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Consolidation & Slow down plays very well for the ailing Airline. A trip on OIL is bound to happen and when it does- this one will sky rocket
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7,000 layoffs announced at end of Q2 to adjust for Oil Prices,
Layoffs completed at beginning of Sept,
Prices Raised,
Fees Raised,
yet Oil Prices are now down signifantly from projected, So Q3 results (usually a down period in any airline year) s/b above projected. Q4 should see AMR back showing profit.
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This stock is oversold.
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just my thought
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12/09 target = $12.
Stock is trading close to bankruptcy expectations. @ $6, the market is saying that they will not have positive earnings in '10. If oil stays below $80, and capacity shrinks as planned, AMR will be profitable next year.
However, if the unions insist on getting back all of the previous concessions, they could take AMR down.
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No end in sight for huge airline losses.
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Part of my short airline Chapter 11 basket trade.
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This stock pick, if not for any other reason, has the potential to double in the next year. Also, it's price fits perfect on my budget. The stock is trading under five $. ~
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3B cash infusion and it's at 8? At least 11...
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Like Chevy, not going anywhere,
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Bought Puts.
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Looks like a technical low point
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