AAL Stock
- Thread starter Glenn Quagmire
- Start date
- Status
MetalMover
Veteran
- Sep 16, 2013
- 3,543
- 2,410
Amazing...Record profits and stock tanks..That's airline stock for you..So many factors affect it....Fuel, middle east unrest....air disasters.......Not to mention every other economic pressure..1AA said:
A month ago, it hit $44 and change, having doubled since December 9, and you're complaining about a 10% pullback since late June? It's still up 80% in just over seven months, a pretty impressive gain.1AA said:
Common stocks do that a lot - they go up and they go down on a daily basis. Especially in industries that are spooked by problems in the Middle East and where 1/3 of the expenses are fuel. Add in the Soviets' shoot-down of a civilian 777 and I'm surprised it's only lost 10%. Things calm down in Israel, fuel prices stabilize and people begin forgetting about the Russia-Ukraine situation and it will probably continue to climb again.
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
- Banned
- #139
mostly because UAL is back in the game with results that eliminate the likelihood that they are washed up.
since they are a key competitor to AA, when UA surges, AA falls.
since they are a key competitor to AA, when UA surges, AA falls.
AA Tulsa Mechanic
Senior
- Jul 18, 2008
- 307
- 95
So LOL.....Be over $50 before u know it.1AA said:
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
- Banned
- #142
oh well. the honeymoon was bound to end.
diamondcutter
Veteran
- Apr 11, 2007
- 640
- 618
WorldTraveler said:
Oh well you are no longer relavent !!!
AA Tulsa Mechanic
Senior
- Jul 18, 2008
- 307
- 95
WORLD TRAVELER JUST GO AWAY ALREADY SMH.
- Banned
- #146
The market tumbled because Argentina has defaulted on its bonds.
http://time.com/3062027/argentina-debt-talks-economy-default-money/
http://time.com/3062027/argentina-debt-talks-economy-default-money/
WeAAsles
Veteran
- Oct 20, 2007
- 23,539
- 5,263
J.P. Morgan moved to Neutral from Overweight on Alaska Air, has an Underweight rating on Southwest Airlines, and is Overweight on the remaining names below. Here are JPM’s price airline price targets, and the potential stock appreciation therein:
Airline/Ticker JPM Target Recent Price Implied upside
American Airlines (AAL) $55.5 $39.59 40%
Delta Air Lines (DAL) $54.5 $37.86 44%
United Cont. Hldg. (UAL) $60.5 $47.39 28%
Alaska Air Group (ALK) $53.5 $45.42 18%
JetBlue Airlines (JBLU) $13.5 $11.11 22%
Southwest Airlines (LUV) $29.5 $28.95 2%
http://finance.yahoo.com/news/stock-futures-fall-argentina-default-112821651.html
Airline/Ticker JPM Target Recent Price Implied upside
American Airlines (AAL) $55.5 $39.59 40%
Delta Air Lines (DAL) $54.5 $37.86 44%
United Cont. Hldg. (UAL) $60.5 $47.39 28%
Alaska Air Group (ALK) $53.5 $45.42 18%
JetBlue Airlines (JBLU) $13.5 $11.11 22%
Southwest Airlines (LUV) $29.5 $28.95 2%
http://finance.yahoo.com/news/stock-futures-fall-argentina-default-112821651.html
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
- Banned
- #148
wow.... those implied upside percentages are quite telling.
eolesen
Veteran
- Jul 23, 2003
- 15,959
- 9,374
Anyone who is getting worked up about what the price is today/yesterday needs to look out the window and see what happened with the market in general.
http://www.reuters.com/article/2014/07/31/us-markets-stocks-idUSKBN0G019T20140731
The market in general started dropping yesterday, and continued its freefall today as more bad news started coming out:
It has nothing to do with how any one airline in particular performed... when investors get spooked, it starts looking like low tide in Nova Scotia. But, the tide does come back in eventually.
http://www.reuters.com/article/2014/07/31/us-markets-stocks-idUSKBN0G019T20140731
The market in general started dropping yesterday, and continued its freefall today as more bad news started coming out:
It has nothing to do with how any one airline in particular performed... when investors get spooked, it starts looking like low tide in Nova Scotia. But, the tide does come back in eventually.
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
- Banned
- #150
wow, E, did you miss the point or just try to avoid it while looking for cute pictures?
let me help ya out.
part 2. Since DL is already the highest market cap airline, a higher upside means it should retain its position given similar stock growth.
part 3. Perhaps Wall Street would like to revisit their investments for AAL based on the MAJOR winter pulldown of capacity that AA announced yesterday which indicates that Parker, as I expected, is serious about pulling non-performing capacity out of the market rather than dumping it just to keep CASM down.
part 4. DOT stats show that during winter 2014, AA's operating profit margin on the Atlantic was just 2% compared to the industry best for the region which was 16%. Across the BIG ocean, AA clocked in with a negative 20% profit margin compared to that airline that is adding all that new SEA-Asia flying but which managed to post a double digit positive margin. AA's operating margin is a couple percent better than it was a year ago.
Latin America continues to generate the vast majority of AA's int'l profits and AA's announcement to add flights to Campinas shows how badly AA will try to protect its network from low fare competition. DL continues to view Latin America as an "investment" region (using Parker's parlance but DL's losses in Latin America were half of AA's on the Pacific on an operating margin basis, driven by DL's capacity adds of up to 25% in the region.
part 5. Thus, Parker recognizes he cannot play development mode across two oceans while using Latin profits to sustain both during the winter. If the Pacific is going to be an investment region, then it makes little sense and is financially impossible to fly a great deal of developmental capacity across the Atlantic as well during the deal of winter while fighting off competitors in Latin America.
AA stock is bound to move up as investors see stronger financiali results - and good for Parker for making the choices to maximize profitability which will benefit AAL stock.
let me help ya out.
part 1. The upside for DL is higher on a percentage basis than for any other airline according to weAAsle's post.WeAAsles said:
part 2. Since DL is already the highest market cap airline, a higher upside means it should retain its position given similar stock growth.
part 3. Perhaps Wall Street would like to revisit their investments for AAL based on the MAJOR winter pulldown of capacity that AA announced yesterday which indicates that Parker, as I expected, is serious about pulling non-performing capacity out of the market rather than dumping it just to keep CASM down.
part 4. DOT stats show that during winter 2014, AA's operating profit margin on the Atlantic was just 2% compared to the industry best for the region which was 16%. Across the BIG ocean, AA clocked in with a negative 20% profit margin compared to that airline that is adding all that new SEA-Asia flying but which managed to post a double digit positive margin. AA's operating margin is a couple percent better than it was a year ago.
Latin America continues to generate the vast majority of AA's int'l profits and AA's announcement to add flights to Campinas shows how badly AA will try to protect its network from low fare competition. DL continues to view Latin America as an "investment" region (using Parker's parlance but DL's losses in Latin America were half of AA's on the Pacific on an operating margin basis, driven by DL's capacity adds of up to 25% in the region.
part 5. Thus, Parker recognizes he cannot play development mode across two oceans while using Latin profits to sustain both during the winter. If the Pacific is going to be an investment region, then it makes little sense and is financially impossible to fly a great deal of developmental capacity across the Atlantic as well during the deal of winter while fighting off competitors in Latin America.
AA stock is bound to move up as investors see stronger financiali results - and good for Parker for making the choices to maximize profitability which will benefit AAL stock.
- Status
Similar threads
