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Jacob Steinberg

 
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  • American Airlines Is Ridiculously Expensive [View article]
    I am sorry that you lost money by following my advice. At the time of writing that article, I used the information that was available to us. As time went on, more information became available and things changed. Since then, I've published several articles on the matter in light of the new information. In investment sometimes we make money, sometimes we lose money.
    Dec 9 05:20 AM | 1 Like Like |Link to Comment
  • The New American Airlines Is On [View article]
    Sorry, that's a typo. It meant to say "spot."
    Nov 14 03:24 PM | Likes Like |Link to Comment
  • The New American Airlines Is On [View article]
    Expected cap is just an estimate. The real cap will be based on LCC's price.
    Nov 14 03:23 PM | Likes Like |Link to Comment
  • The New American Airlines Is On [View article]
    When you are emerging from a bankruptcy with Q shares, your earnings and financials don't really mean anything. Check what happened to GM after it emerged from bankruptcy in 2009; its shareholders didn't even get a penny. The shares of American Airlines would be worth $0 without the merger because if it decided to emerge from bankruptcy as a standalone company, all of its assets would barely cover the debt and there would be nothing left for the shareholders to grab. It's called bankruptcy and it's a special circumstance.
    Nov 13 07:13 PM | Likes Like |Link to Comment
  • S&P Upgrades US Airways To Strong Buy With Price Target Of $26 [View article]
    Most online brokers have access to S&P's research reports. You can check your account to view the full report.
    Sep 6 11:05 AM | Likes Like |Link to Comment
  • AMR-US Merger: Why DOJ's Action Makes No Sense [View article]
    This article was viewed by thousands of people and apparently you are the only one who didn't get it. I wasn't sure if you had comprehension issues or you were just trolling, but now I am pretty convinced that you are just trolling. Have a good day sir, I am done with you.
    Aug 18 02:56 AM | Likes Like |Link to Comment
  • AMR-US Merger: Why DOJ's Action Makes No Sense [View article]
    It's called common sense. That's like saying "please enlighten me how turning the air conditioner on will make the room cooler, the air conditioner is completely irrelevant to the room temperature" which has been your logic since the beginning.

    Last time I checked, AA was a bankrupt company and it didn't have a feasible plan for emerging from bankruptcy as a standalone company. By definition, AA already "lessened the competition" by going bankrupt. The bankruptcy court gave AA several months to come up with a feasible plan, and all AA did was to ask for extension and after extension because it couldn't come up with a feasible business model. At the end it had no choice but to merge with the US Airways. Without the merger, AA can't exist anyways so the "competition would be lessened" by definition. It's not like there is an AA that can survive without the merger and the merger is killing it. There is no feasible AA and merger is simply giving it a chance to survive. It's as simple as 1+1 = 2.

    At this point, I don't even know if you are being serious or just trolling. Next you'll ask me to enlighten you on how sun is relevant on temperature on earth.
    Aug 17 04:20 PM | Likes Like |Link to Comment
  • AMR-US Merger: Why DOJ's Action Makes No Sense [View article]
    Well it's not my fault you have comprehension issues then. If you think this article is as relevant to DOJ's case as a blue dog is relevant to a murder case, I strongly suggest you to take some comprehension lessons and maybe you'll become a better reader. I am sorry but I can't improve your comprehensive skills. I'm done arguing with you because I can't teach you skills you don't possess. It's not my job, it was the job of the education system wherever you were schooled.
    Aug 17 03:27 PM | Likes Like |Link to Comment
  • AMR-US Merger: Why DOJ's Action Makes No Sense [View article]
    And what's your whole argument? It's that "if the two companies merge, they will be too big so therefore they shouldn't merge."

    If it was up to you, companies like Apple, Microsoft, Verizon, Exxon Mobile, Pepsi, Coca Cola, McDonalds and IBM would be also broken into tens of tiny companies because they are too big for your taste.

    DOJ thinks that the merger will hurt the consumers by increasing ticket prices. Well guess what, ticket prices WILL have to increase regardless of merger. Airline companies are just like other companies, they are there to make a PROFIT. Airline companies are not government operated entities, at least not in the US. Whether you like it or not, DOJ can't tell companies not to make a profit. If DOJ is trying to stop the merger by arguing that it will increase the ticket prices and hurt the consumers (which it's been saying) this is completely irrelevant because ticket prices aren't increasing because of the merger. Rather, airline companies are cutting the routes that are not profitable and becoming more efficient so that they don't go out of business every 5-10 years like the norm in the industry.

    DOJ can stop this merger all it wants but this won't really matter for the consumers. At the end of day, the effect of the merger on consumers (or the effect of blocking the merger on consumers) will be pretty close to zero, which proves that DOJ's argument (and your argument) make no sense and relevance whatsoever.
    Aug 16 03:25 PM | 1 Like Like |Link to Comment
  • AMR-US Merger: Why DOJ's Action Makes No Sense [View article]
    First of all, not all routes run by American Airlines are profitable. If the company wants to survive, it will have to cancel or sell all the routes it operates that are not profitable, which can be in hundreds. In that event, AA becomes a much smaller (but more profitable) company, but its assets are picked up by the top 4 companies, making each one bigger, reducing the competition effectively.

    Second, how do you expect to pay off all of AA's debt? The company's book value is close to negative $10 billion and you can't just make that debt go away. Most of AA's debt is to its employees and unions. Without this merger, there is no way AA can pay off this debt. It was going to give a lot of shares of the new company to its debt holders and any other alternative wouldn't work.

    Third, if AA comes back from bankruptcy and nothing changes, it will surely go bankrupt again within a few years. If a business model has failed miserably, giving it another shot won't make it work. It will fail miserably again.

    Earlier on, DOJ approved several mergers that created huge airlines like United or Delta. Obviously airline companies either need to merge and become a lot bigger and effective, or they will have to get a lot smaller and only keep profitable few routes. DOJ thinks that forcing them to have low margins and possibly more bankruptcies in the future is good for customers who will get hurt more in the future when airline companies start cutting routes that are not profitable for them (which already started with some companies).
    Aug 16 12:09 AM | 1 Like Like |Link to Comment
  • AMR-US Merger: Why DOJ's Action Makes No Sense [View article]
    Did you even read the article? I guess not since your responses to the article are completely irrelevant.
    Aug 15 06:28 PM | 3 Likes Like |Link to Comment
  • DOJ Blocks US Airways-American Airlines Merger, Now What? [View article]
    It is true but the company also has plenty of debt.
    Aug 15 10:42 AM | Likes Like |Link to Comment
  • DOJ Blocks US Airways-American Airlines Merger, Now What? [View article]
    A joint conference call by the two companies will occur in 40 minutes.
    Aug 14 02:21 PM | Likes Like |Link to Comment
  • DOJ Blocks US Airways-American Airlines Merger, Now What? [View article]
    Wow, first you claim that I called investors "dumb" and that I was bragging about my "prediction" even though it was nothing but your misinterpretation of what I said. Then you continue on misinterpreting the stuff I said and attempt to compare apples to oranges in order to prove yourself correct.

    At first I said "no one was expecting the federal government to be involved..." because that's the fact. Last month, when the news stories appeared saying that DOJ was going to take action, it didn't move the needle for anyone. It didn't lead to a sell-off, and it didn't lead any of the analysts to warn the investors or change their outlook in any way. Basically, business went on as usual. In the later paragraph I say that "DOJ's action shouldn't have surprised anyone because it was pre-announced" which is in line with everything I'd said. Today's sell-off shouldn't have happened. It should have either happened a month ago when the story first came out, or it should have never happened. It just doesn't make sense to me that an incident triggers a sell-off one month after the announcement.

    Now that your second effort failed too, go back to the article, read it for a third time and maybe you'll come up with a better comeback. Or maybe you'll just comprehend it this time. They say third time is the charm.
    Aug 13 11:24 PM | 3 Likes Like |Link to Comment
  • DOJ Blocks US Airways-American Airlines Merger, Now What? [View article]
    I think you should read that statement again, and again, and again, until you actually comprehend what it says. Nowhere in that passage do I say that I "predicted" what was coming. And nowhere in the passage do I say that investors are "dumb". Today there was a massive sell-off by investors who were caught "off guard" even though DOJ's action was announced a month ago. This has NOTHING to do with being able to predict anything. Last month, news reports said that "DOJ was suing LCC-AAMRQ", and this month, DOJ says that "it's suing LCC-AAMRQ" and everybody acts like "gee where did this come from, we didn't see this coming?"

    It must be a delight to be a reader like you who can interpret what you read completely wrong and attack the writer because your interpretation was way, way off.
    Aug 13 10:05 PM | 4 Likes Like |Link to Comment
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