Poll

(POLL) Would You Invest In AMR (American Airlines) Stocks Now?

No way! They're going to disappear any day now.
12 (30%)
I will and I will make HUGE returns.
10 (25%)
I'd reluctantly put a few bucks in... Just in case...
10 (25%)
I'll see what happens in the next couple weeks regarding AA's restructuring and then I'll decide.
8 (20%)

Total Members Voted: 40

Author Topic: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?  (Read 12938 times)

Offline Dan

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Re: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #20 on: December 14, 2011, 01:08:24 PM »
"If AMR stock is worthless then why is it trading at $0.38? One reason why AMR stock is not at 0 is because it was a very heavily shorted stock prior to the bankruptcy filing. Market participants who shorted AMR stock must buy the stock back to cover their shorts. This short covering game can go on for some time, but in the end the stock will go to 0. As an example of how stocks trade post bankruptcy, let's consider the old GM (GM) stock. After the bankruptcy, GM stock hovered between 20 cents and 80 cents for a period of many moths before ultimately becoming worthless."
Interesting, thanks!
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline Mocha

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Re: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #21 on: December 14, 2011, 01:16:21 PM »

Offline Flying Fish

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Re: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #22 on: December 14, 2011, 01:45:18 PM »
"If AMR stock is worthless then why is it trading at $0.38? One reason why AMR stock is not at 0 is because it was a very heavily shorted stock prior to the bankruptcy filing. Market participants who shorted AMR stock must buy the stock back to cover their shorts. This short covering game can go on for some time, but in the end the stock will go to 0. As an example of how stocks trade post bankruptcy, let's consider the old GM (GM) stock. After the bankruptcy, GM stock hovered between 20 cents and 80 cents for a period of many moths before ultimately becoming worthless."
I don't believe the writer of this SA article is correct. Short sellers would have covered their positions immediately after the bankruptcy news, as they risk being caught in a short squeeze. The true reason why the shares still have value is the possibility of shareholders receiving warrants in the new company. See this MarketWatch article.

Offline Mocha

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Re: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #23 on: December 14, 2011, 02:09:52 PM »
Actually I think the Options reason makes more sense. But again it could be a combination of both.

MarketWatch says "AMR at the end of the third quarter held about $12 billion debt and another $7 billion in pension liabilities, versus $4.1 billion in unrestricted cash."

Thats (-12+-7) - 4.1 = -$14.9 Billion. What are the chances that anyone is holding onto a share for a payout? On the other hand someone could have shorted the stock at $1 and is looking for the highest he can get. Again I'm sure there's more than one answer here.

Offline mercaz1

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Re: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #24 on: December 14, 2011, 02:49:47 PM »
just sold my stock
might as well use the losses as a tax write off

Offline Am

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Re: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #25 on: December 14, 2011, 03:43:25 PM »
Bought this morning at 0.62 and immediately put in a limit sell order at 0.70 which happened about an hour later. I'm having great fun on Money I could afford to lose Otherwise i'd be insanely stupid

Offline txtmax4

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Re: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #26 on: December 14, 2011, 06:03:20 PM »
Bought this morning at 0.62 and immediately put in a limit sell order at 0.70 which happened about an hour later. I'm having great fun on Money I could afford to lose Otherwise i'd be insanely stupid
Mind sharing how much you playin' with?
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Offline AJK

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Re: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #27 on: December 14, 2011, 08:14:12 PM »
Bought this morning at 0.62 and immediately put in a limit sell order at 0.70 which happened about an hour later. I'm having great fun on Money I could afford to lose Otherwise i'd be insanely stupid

+1

Did it about a week ago. Bought it at ~.72 sold at ~.84.
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Offline dwkl

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Re: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #28 on: December 29, 2011, 02:50:08 PM »
im a 2 mill plat on AA but i think service has gone down tremendously, guess theyre trying to save $ but in a service business if you lack service why should passengers stay with you
 theyve taken a left turn unless  things chg quickly i see them going down hill!

Offline Mocha

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Re: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #29 on: December 29, 2011, 03:11:44 PM »
im a 2 mill plat on AA but i think service has gone down tremendously, guess theyre trying to save $ but in a service business if you lack service why should passengers stay with you
 theyve taken a left turn unless  things chg quickly i see them going down hill!
Can you give an example? If they're fleet was up to par with B6 or CO I wouldn't care much if the FA's had attidues.

Offline farmerjoe

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(POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #30 on: December 29, 2011, 11:59:21 PM »
AMR is being delisted from the NYSE!!!!!
I hope nobody here invested big money there!!

Offline dwkl

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Re: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #31 on: December 30, 2011, 11:47:40 AM »
Can you give an example? If they're fleet was up to par with B6 or CO I wouldn't care much if the FA's had attidues.
as a case in point this week on the news  AA flt delayed do wind conditions, passengers stranded in airport for over 13 hours airline did nothing for passengers hotel,food etc blamed it on weather and told them to fly a kite(instead of a plane)

Offline Jkhein

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Re: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #32 on: December 31, 2011, 11:33:27 AM »
as a case in point this week on the news  AA flt delayed do wind conditions, passengers stranded in airport for over 13 hours airline did nothing for passengers hotel,food etc blamed it on weather and told them to fly a kite(instead of a plane)
Yup my family was part of  that!!! Do you have a link to that news article?   

Offline moish

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Re: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #33 on: January 01, 2012, 08:39:20 AM »
that happens on other airlines too, though

Offline AJK

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Re: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #34 on: January 01, 2012, 03:06:50 PM »
that happens on other airlines too, though

Of course it does. but the other airlines--though I forget if its required or not--provide compensation, especially when it gets this amount of media attention.

Has there been a time that airlines haven't provided compensation? Assuredly so, but I think the odds of compensation being offered rise proportionally with the amount of publicity the incident receives.
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Offline Moshe_N

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Re: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #35 on: March 08, 2020, 09:13:56 PM »
The stocks are half off right now. Should I invest?

Offline Sam Finkelstein

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Re: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #36 on: March 08, 2020, 09:15:09 PM »
The stocks are half off right now. Should I invest?

Wait till things settle down IMHO.
Formula for success: rise early, work hard, strike oil. –J. Paul Getty

Offline EliJelly

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Re: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #37 on: March 08, 2020, 09:46:54 PM »
Why did AAL plummet more than other airlines?

Offline Sam Finkelstein

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Re: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #38 on: March 08, 2020, 09:48:06 PM »
Why did AAL plummet more than other airlines?

Because they’re the worst.
Formula for success: rise early, work hard, strike oil. –J. Paul Getty

Offline EliJelly

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Re: (POLL) Would You Invest In AMR (American Airlines) Stocks Now?
« Reply #39 on: March 08, 2020, 09:52:57 PM »
Because they’re the worst.
In general, with Coronvirus? Less trust they'll recover?