267 shares? What a joke!

TWU informer said:
There are two different stocks.
 
AAL and AALCP
 
Employees own AALCP
Click to expand...
That's true.   IIRC, the creditors who were owed money (and will get a fixed dollar amount for their claims) are getting preferred stock that is convertible into common stock.
 
I executed a sell on Monday. I received nearly $2 less per share than the "LOW" price of the day AAL. And even lower than the daily "low" for AALCP.
I feel ripped off but at the same time, happy to have gotten a dime given the experiences of the past decade.
 
FWAAA said:
 
 
I've got that letter.  If the stock goes up, fewer shares will be issued, and thus, you'll get fewer shares in the final distribution.   You're correct about that.   The reason that fewer shares will be issued if the stock goes up is because the creditors who foolishly lent money to AA get a fixed dollar amount in satisfaction of their claims.   

Look at that letter and multiply the total shares by the 120 day price and you'll see that if the stock goes up, the total value of the stock to the employees increases.    If the stock price goes down, then yes, the total value of the stock goes down.   
 
The TWU employees get 4.8%  of the stock issued to AA constituents (4.8% of the 72%).    If the stock doubles in value at the 120 day window, the employees will share in that gain.    If it falls to half at 120 days (around $11/sh), then employees lose big.
 
No, at 120 days, employees get enough stock so that they share the 23.6% they were promised.   The APA will get 13.5% of the new stock, the APFA will get 3%, the TWU will get its 4.8% and the non-union, non-executives (agents, support staff and management) will get the remaining 2.3%.    
 
No, the initial price of the AAL stock matched the Friday close of LCC, but employees will get 23.6% of the new AAL stock that's issued to the AMR creditors/claimants/stockholders.    The only people whose claims are a fixed dollar amount are the people who were owed money by AMR.   Employee claims will be fixed percentage of the total number of shares issued to the AMR creditors/claimants.   The total number of shares making up that 72% is unknown at this time, but by April 9, the AA employees will own 23.6% of that 72% whether the stock is trading for $1/sh or $100/sh.   
 
Who wins really big if the stock goes up?    Employees win some, but the stockholders of old AMR (AAMRQ) win really big if the stock stays up.   As common stockholders,  they get what's left, and the higher AAL goes, the more they get.   
 
No, the employees are owed 23.6% of the total number of shares issued to the AMR creditors/claimants.   We know that the stockholders of old US Airways (LCC) got one share of AAL for each share of LCC.   They get nothing more.  No matter where the stock price goes.   We also know that their shares of AAL are exactly 28% of the total number of shares of AAL.   The other 72% are the AMR creditors, the AA employees and the holders of old AMR stock (AAMRQ).   
 
No, that's completely wrong.   You're a stockholder - you own a percentage of the company.  The higher it goes, the more value your percentage is worth.    
 
Your cost basis was the Friday closing price of LCC.   That price is ordinary income to employees (just like wages).   Everything above that is capital gains (taxed at lower rates).    
Click to expand...
OK, so if employee A sells his stock @ say $25.00, and the price rises to $30, then employee B who kept his stiock has received a higher value than employee A. Does sell/hold and price calculate into final total or just price?
 
TWU informer said:
OK, so if employee A sells his stock @ say $25.00, and the price rises to $30, then employee B who kept his stiock has received a higher value than employee A. Does sell/hold and price calculate into final total or just price?
Click to expand...
The April 9 distribution of additional stock (or the less likely distributions prior to that date) will not be affected by whether you sold your initial shares or whether you still hold them at that date, so selling on Monday did not affect the number of shares you'll get later.   
 
According to the computershare folks...my account number is AAL and that is the price  they quoted for my share balance.
 
So hell, I don't know!
 
Wouldn't it be nice if we got some definitive information from somebody like hmmm, I don't know. Maybe the TWU?! Aren't they in charge of this debacle?
 
enough already said:
Wouldn't it be nice if we got some definitive information from somebody like hmmm, I don't know. Maybe the TWU?! Aren't they in charge of this debacle?
Click to expand...
They are busy staging boycotts. They will get to real information later. I do trust that FWAAA is correct and that I am mistaken in my understanding.
 
Simple math says when you divide my balance by the number of shares, it's the AAL quote and not AALCP.
 
AANOTOK said:
So,BigMac...did you sell @ $26.21? and if so then it is AAL.
Click to expand...
Yes @ $ 26.21 earlier today. I had two windows open at the time. The google link and the Compushare sell windows. Compushare #s can run up to 20 minutes behind the google real time link I posted. I clicked sell as soon as I seen the google # hit $26.21. The page then confirmed I had sold 214 shares at $26.21. There are many options selling and receiving your shares. You can set it up to sell any number of shares only when it reaches a certain amount. Example: say you want to sell 50 shares but only if it reaches $40 a share. Also I set mine up for direct deposit in my personal bank.
 
You must log in or register to reply here.

Similar threads

R
Q2 10-q
Replies
1
Views
762
Rob
R
BoeingBoy
What Those At The Top Got
2
Replies
20
Views
3K
Oliver Twist
O
L
Record 2Q profit projected for the majors.
Replies
0
Views
774
LowManOnThePole
L
S
ADIZ Public Meetings Set
Replies
0
Views
651
Sport_AV
S
B
Profit sharing
3 4 5
Replies
74
Views
9K
scorpion 2
S

Latest posts

Back
Top