AMR has hit $2.85 today and is in a free fall. There is a good chance that AA will go bankrupt 1st then ask for Union concessions 2nd. Thus bypassing the meaningless and time consuming negotiations. AA doesnt have the time. Iv still have 2 1/2 trading days to see if I hit my call. When I made this call over 3 months ago I though the war was going to start just after the Super Bowl. I was factoring the war effect. Now that the war is still a month away. I have to go back and roll them "bones," again and see how low she can go.
AMR closed today at another record low, $2.92. AMR has decline over %50 since I made this call less then 2 weeks ago. Now that AMR has closed below $3/ share, for the first time, the floor has been broken. There isnt any reason for the stock to go up. There are a lot of reasons for it to continue to go down. Oil, labor unrest, war, debt servicing, and pension shortfalls to name a few.
With difficult labor talks coming, in the new future, investors have learn that they always lead to bankruptcy and not a peaceful settlement. There hasnt been an airline in such poor finacial shape that tried to talk to Unions for help that hasnt had to go down that path. To bad the Unions can not learn from other Unions mistakes. We shall see if the AA Unions have. I doubt it.
Darn! Missed my call by 3 pennies. Still not bad considering it was made over 3.5 months ago. People thought I was nuts then. Well Im still nuts today and trying to figure out what the war is going to do to the stock. I let you guys know when I have it all figured out. Who would have guessed that AMR stock would lose 90% of its value in just 1 year?
