AAL Stock

[scorpion 2]

You know your wrong. Taking equity to pay for someone elses decision is like taking a holiday away after the contract is signed in order to pay for negotiations! 

 

[Glenn Quagmire]

Glenn are you serious, lol. They have to keep trying to pander to the audience. That's all it's about you know.
So back on topic. Do you think she can hit $100.00 by next fall? I think there's a strong possibility of $60 by the end of the year.

I think it will continue to outperform its peers. Merger synergies are starting to be realized. Investors are bullish on AA and IMO, will continue to drive it up in comparison to its peers.

BTW, I am not a stockholder of any airline.

http://stockmarketmentor.com/2014/06/bullish-breakout-on-american-airlines-aal/

 

[WeAAsles]

I think it will continue to outperform its peers. Merger synergies are starting to be realized. Investors are bullish on AA and IMO, will continue to drive it up in comparison to its peers.

BTW, I am not a stockholder of any airline.

So what are you waiting for? Transportation's are on fire.

 

[Force Majeure]

It is interesting that the resident delta marketing wordster has not shown up on this thread. It is kind of hard to spin that graph.

 

[Kev3188]

 
 

So what are you waiting for? Transportation's are on fire.

 
Yes they are- at least compared to where they were just a short time ago...
 
I own shares in 2 carriers. Both stocks are performing nicely...

 

[WeAAsles]

 
 
 
Yes they are- at least compared to where they were just a short time ago...
 
I own shares in 2 carriers. Both stocks are performing nicely...

I bet that I can guess one of the carriers you don't own?

http://finance.yahoo.com/news/united-close-dulles-hub-analyst-155800873.html

 

[WorldTraveler]

It is interesting that the resident delta marketing wordster has not shown up on this thread. It is kind of hard to spin that graph.

why?

AA is enjoying the fruits of their BK including average labor costs than are 9% lower than DL and UA per employee (we won't even make the comparison to WN), the end of US' fare policy of undercutting competitor pricing in other carrier key markets, a weak UA which is spilling revenue to everyone else, and reduced capacity thruout the industry.

there are all kinds of reasons why AA is doing well.

 

[Kev3188]

I bet that I can guess one of the carriers you don't own?

http://finance.yahoo.com/news/united-close-dulles-hub-analyst-155800873.html

Lol. Good guess!

 

[WeAAsles]

Ok it looks like thankfully the mods have put this thread back on topic.

I was saying my crystal ball has a price target of reaching $60 by years end? Possibility of $100 by next fall absent any stock splits?

What do you guys think?

 

[Kev3188]

My guess-and it's just that- is that it levels out somewhere in the $45-60ish neighborhood. Same story with the Widget. I also think that the trend of airline stocks being (relatively) stable will continue...

 

[WorldTraveler]

Ok it looks like thankfully the mods have put this thread back on topic.

I was saying my crystal ball has a price target of reaching $60 by years end? Possibility of $100 by next fall absent any stock splits?

What do you guys think?

you can pick out whatever range you want to use....
the industry fundamentals are strong and there is no reason to think that AA cannot benefit from them.

AA has yet to complete its merger, including reducing excess and duplicate capacity, and they also have not seen increased competition as a result of the divestiture of assets that were required as part of the asset agreement.

further, AA's pilots are already saying that based on the strong fundamentals, they want to regain their salaries and bring the US pilots up to industry acceptable levels.

thus, the one major advantage that AA has relative to DL and UA, low labor costs, could easily become a thing of the past.



 

My guess-and it's just that- is that it levels out somewhere in the $45-60ish neighborhood. Same story with the Widget. I also think that the trend of airline stocks being (relatively) stable will continue...

even if earnings comes out the same, DL's balance sheet is headed in a far healthier position than AA's.

AA is not generating the level of free cash that DL has been generating which means that the huge stash of borrowed that AA/US is sitting on will diminish fairly quickly.

the fundamentals of how DL mgmt. is running the finances of Delta are more like AS and WN than AA or UA.

earnings are only part of the story.

 

[Jacobin777]

Ok it looks like thankfully the mods have put this thread back on topic.

I was saying my crystal ball has a price target of reaching $60 by years end? Possibility of $100 by next fall absent any stock splits?

What do you guys think?

 
Unless the Federal Reservers keeps "printing" money to "prop" the markets (because it certainly isn't "trickling' down to the general economy), I don't see the air carriers (nor the general market for that matter) do well. I see $20's-$30's for AAL down the road-possibly even lower. Historically, air carriers have a low P/E for a reason. Even with the current oligopolies, I simply don't see the carriers earnings "accelerating" to warrant an expaneded P/E and/or stock price.
 

My guess-and it's just that- is that it levels out somewhere in the $45-60ish neighborhood. Same story with the Widget. I also think that the trend of airline stocks being (relatively) stable will continue...

 
You are way too optimistic!
 

you can pick out whatever range you want to use....
the industry fundamentals are strong and there is no reason to think that AA cannot benefit from them.

AA has yet to complete its merger, including reducing excess and duplicate capacity, and they also have not seen increased competition as a result of the divestiture of assets that were required as part of the asset agreement.

further, AA's pilots are already saying that based on the strong fundamentals, they want to regain their salaries and bring the US pilots up to industry acceptable levels.

thus, the one major advantage that AA has relative to DL and UA, low labor costs, could easily become a thing of the past.



 

even if earnings comes out the same, DL's balance sheet is headed in a far healthier position than AA's.

AA is not generating the level of free cash that DL has been generating which means that the huge stash of borrowed that AA/US is sitting on will diminish fairly quickly.

the fundamentals of how DL mgmt. is running the finances of Delta are more like AS and WN than AA or UA.

earnings are only part of the story.

 
While I disagree with you on most things (LOL) I do agree and have been incessantly stating that AA's cost structure (even with BK) isn't sustainable. Parker offered one too many "lollipops" to the unions. The irony here is that the unions were disgruntled with Horton's $20 million dollar package but have no problems with Parker's $40+ million plus package.

 

[Kev3188]

You are way too optimistic!

That may be the first time in the history of this board that word has been used to describe me.

Seriously, I may have bet high, but I do think that regardless of where each stock settles, the overall stability will remain...

 

[WorldTraveler]

hey Jacobin,
it is great to see you back!

I agree with what you have written!

 

[1AA]

AAL stock taking a nose dive today. Down 4% almost $2 before noon.
Today Imperial Capital raised its target from $46 to $55.
WTF?