AA shares fall to $1.83

Discussion in 'American Airlines | AAdvantage' started by Titans26, Oct 3, 2011.  |  Print Topic

  1. Titans26

    Titans26 Silver Member

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    AA share price on the decline!

    Shares of American Airlines parent AMR Corp. declined sharply Monday to their lowest level in more than two years on renewed concerns the troubled carrier was about to file for bankruptcy.

    More than 200 pilots have retired from the Fort Worth, Texas, carrier in the last two months, compared with a typical monthly dozen, according to media reports. Pilots who retired last week were able to cash in company stock at its Aug. 1 price, which was 28% above Friday’s closing price.

    “We are in a down market today, but the exceptional number of American pilots retiring is a sign that they want to protect their pensions and get out before a possible filing further [depresses] the stock price,” said Ray Neidl, an analyst with Maxim Group LLC. “I still believe that AMR management wants to avoid filing.”

    No one from AMR or the Airline Pilots Association was available to comment. Shares of AMR recently fell 38% to $1.83.

    Other airline shares were down sharply, too. United Continental was down 11%, Delta was down nearly 10%, Southwest was off nearly 7%.
     
  2. JohnDeere19
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    JohnDeere19 Gold Member

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    This is a blood bath. Trading has been halted and resumed multiple times today!
     
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  3. mundosurfer
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    mundosurfer Gold Member

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    Yep 4 halts on the down side and 3 on the upside
     
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  4. Travelsavant
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    Travelsavant Gold Member

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    Wow! Maybe I'll buy some just for the novelty factor!
     
  5. JohnDeere19
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    JohnDeere19 Gold Member

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    Be okay with gambling!
     
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  6. Nelumbo
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    Nelumbo Silver Member

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    $1.75 was the lowest today. The question is when to buy it. Does it look a good buy now (or tomorrow)?
     
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  7. Scottrick
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    Scottrick Gold Member

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    Back when I was a wee child (about 14-15? my memory is going...) I remember when everyone thought Apple was going to declare bankruptcy. Personally I didn't like the company and hoped it would go bankrupt, but that's probably because I have a habit of not liking things I'm supposed to like, and I lived down the street from HQ (I also refused to learn Spanish in high school because everyone assumes Californians can speak Spanish). I briefly considered buying 100 shares for $5 each on the chance it recovered, but my spite got the better of me and kept me from considering all the things Apple had going for it, like Steve Jobs' return, the new iPod, etc.

    All I'm saying is, you shouldn't gamble in stocks, but you shouldn't let your emotional feelings about a company influence you, either. I never fly AA, but it isn't for any particular reason except I can only afford to play the game with one airline, and that airline is UA for now. AA has a lot of issues with its pilots leaving, labor costs, etc. But I also see a lot of benefits as they clearly are trying to improve their fleet and soft product to differentiate themselves. I don't see a reason for them to declare bankruptcy just yet, but it will be a difficult few years.
     
  8. Travelsavant
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    Travelsavant Gold Member

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    Thanks for the advice but not emotional over AA & wasn't planning on gambling my fortune on AA stock...maybe 100 shares, same as I did for Apple & Google back when! :D
     
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  9. CDKing
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    CDKing Gold Member

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    I'm thinking about gambling as well. Maybe a few hundred dollars?
     
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  10. mrredskin
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    mrredskin Gold Member

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    gambling is exactly what you all will be doing, and you'd be better off throwing $200 into an airport slot at LAS. nothing i've read has shown that it's worth a gamble at this price. I said a few months ago that $2 would be my price point, but they've got a lot of debt coming due (~$3bil) in the next couple of years, and without turning a profit in so long, this isn't boding well for them. Just because it's cheap doesn't mean it's bouncing back. I'd look at DAL as a buy-low right now.
     
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  11. mtlfire

    mtlfire Gold Member

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    I bought back when this happened to GM. Told myself they would never let it go bankrupt. :confused:
     
  12. TRAVELSIG
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    TRAVELSIG Gold Member

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    $2.30 with a huge volume this morning on NYSE (already over the daily average). This being said- very difficult to understand what happens next.
     
  13. mundosurfer
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    mundosurfer Gold Member

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    I think your statement applies to all the markets globally, not just AMR stock.
     
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  14. TRAVELSIG
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    TRAVELSIG Gold Member

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    Yes you are correct.
     
  15. viguera
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    viguera Gold Member

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    Day traders having a field day with it, no doubt. If you bought 10k shares yesterday and sold them this morning you'd make 25% return on your investment overnight.

    The shorts have been doing this for ages... they pick a company that's in the news and start the stock rolling downhill, and all you really need is the capital to get it started.

    They did this to a bunch of financials and technology companies recently... and hedge funds are experts at this already because they can easily afford to drop $30 million buying credit default swaps and limit puts to wager against the company's debt. Then you go on CNBC and tell everybody that people are pulling out and the swaps are spiking, your other hedge fund buddies follow suit, the longs panic and pull their money out and next thing you know the stock is in the toilet.

    Now you go cover your position by buying the stock dirt cheap and made a huge profit with very little effort. All the while there's nothing really going on, just short-sellers blowing smoke and the company can't do anything about it because it's just business as usual, other than times being tough.

    It sucks, but it's all a game and you have to learn to either play along or turn off the TV. Really sucks for "regular" people that have an interest in the company itself or have stock options and now see their portfolios in the trash though.
     
  16. CDKing
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    CDKing Gold Member

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    I'm in for 150 shares. It took me too long to get my brokerage account setup and made the rookie mistake of buying on opening this morning $2.67 a share. But hey its cheaper then going to vegas
     
  17. THREEA4ME
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    THREEA4ME Silver Member

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    I bought Ford at a buck seventy five in 2008. Deals can be had.
     
  18. viguera
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    viguera Gold Member

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    I seriously hope you got some miles for setting up the account too. :)
     
  19. JohnDeere19
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    JohnDeere19 Gold Member

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    So, who made a fortune off of this :p
     
  20. rwoman
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    rwoman Gold Member

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    Scottrick,

    +1...although after being in Spain this weekend, I understand more Spanish than I'd think...thanks to that California upbringing.

    :)
     
  21. DestinationDavid
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    DestinationDavid Milepoint Guide

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    For those who bought low, this afternoon might have been a good time to sell....!
     
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  22. iolaire
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    iolaire Gold Member

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    I bought low in the $2.3 range and immediately lost it with a 10% training stop :-(
     
  23. Gaucho
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    Gaucho Gold Member

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    Given the volatility in the stock, perhaps you guys should be trading options instead of the stock itself....?
     
  24. JNB280

    JNB280 Silver Member

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    Maybe on GOOG but not on a sub $5.00 stock. Just have to allow yourself a greater risk tolerance percentage.
     
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  25. Juanefny

    Juanefny Silver Member

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    Seriously? I think it's sad to have this mentality. The more languages you know, the better off you are. Period.
     

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