AANOTOK
Veteran
- Oct 10, 2009
- 4,627
- 2,242
Kerr if you recall is the same guy who stated a few months back that AA had more money than they knew what to do with...then the share buyback followed. Parker is the one who said among other things, that he would bet Wallstreet a bottle of wine (or glass) that AA's stock would be at $60 a share in the not to distant future.that's the whole thing. you give parker the benefit of the doubt (leap of faith propaganda) and he's let us down. he doubled down with promising ILC contracts and now the company is backtracking on this. the facts & figures are right there for all to see.
i do believe that some of it is bargaining posturing and i never expected aa to give us the whole store...but they have taken a maximalist position on every article of scope & compensation.
parker's baby (the stock) is tanking and i wouldn't be surprised to read that buffet has been selling shares. the spread between dl stock and aa stock is increasing, where today dl is worth nearly double (market cap) than aa. if aa never bought back any shares, it's current market cap tells us the stock would be around $29-$30 a share.
- aa's dividend (3xs less than dl) is a joke compared to dl.
- aa flopped on fuel hedging. did mr. kerr believe that oil would eventually go down to $2 a barrel? degreed executives? captains of industry?? hedging would have provided massive income surprises the past few quarters...guys who throw bags for a living saw this clearly. is there some remorse and guilt where aa produced a video clip explaining why aa didn't hedge on fuel?
- the current company attitude could see a summer of discontent. the reliability and dependability of the operation may suffer and add further downward pressure on aa stock.
this brings us to the board of directors who may turn the screws on someone - they need to - to get sh!t done. i have no problem being held accountable for my work preformance...so should those collecting millions and looking to deny those who earn in the tens of thousands.
this is not america west and this is not us air. this is the world's largest airline.