1. Projected synergies of 1 billion estimated to remain intact even after somewhat broader but relatively insignificant divestitures.
2. By settling with the DOJ earlier than anticipated, the new AAL will be traded on the NASDAQ in December. This gives the airlines a headstart on enjoying the windfalls of the merger and becoming the largest airline in the world.
3. AMR trades at 10x earning and US AIR 8.3x, which trades at a discount from the industry as a whole.
4. With institutional ownership at just 4.1%, look for strong upside movement in the stock as news of activist investors starting to pile in.
I believe all of these positives have not been baked into the already elevated stock price, and therefore maintain an estimate of $16 by the end of December for AAMRQ.
Disclosure: I am long AAMRQ, LCC.