Seeking Alpha

American Airlines Group set for debut next week

  • The operations of U.S. Airways (LCC -0.8%) can squeeze out an extra $1B in financial gains as it cuts routes and consolidates strategically with American Airlines (AAMRQ), analysts forecast.
  • The JFK-Heathrow and JFK-LAX routes in particular appear to have the potential to help profitability soar for the new combined airliner.
  • What to watch: The two carriers will cease to trade after Friday in front of the debut of American Airlines Group (AAL) on the Nasdaq on December 9.
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Comments (17)
  • Sander@parlini.com
    , contributor
    Comments (3) | Send Message
     
    Is this the reason why US AIRWAY GROUP shares are falling? And are they expected to rise up again after the merge? Im a bit worried about my stocks. :((
    2 Dec 2013, 03:11 PM Reply Like
  • zarbycat
    , contributor
    Comment (1) | Send Message
     
    Actually both US Airways stock and AAMRQ stoke have dropped lately. In part because of the holiday and people taking profits. That is especially true of the AAMRQ stock. The US Airways stock maybe falling entirely due to the merger. AAMRQ stock holders will get shares of LCC when the merger is completed. There is a very good explanation on a site called HIEP'S Finance
    3 Dec 2013, 02:05 PM Reply Like
  • edemel1@aol.com
    , contributor
    Comments (5) | Send Message
     
    im worried also grrrrr
    3 Dec 2013, 02:30 PM Reply Like
  • edemel1@aol.com
    , contributor
    Comments (5) | Send Message
     
    i have been a stock holder since 2006 on a reverse, the stock dropped and still own it at a price of 27$ a share. i put a sell price when it would reach 35$ to break even...

     

    about 3 months ago when the stock dropped at the time to 3.15 a share i bought more..... i dont know what will happen with the 2 stocks merge... i hope it does not happen like kmart merging with sears, or delta airlines re did their stock... waaaaaaaa no winning here so far!!!!
    3 Dec 2013, 02:30 PM Reply Like
  • lvaz
    , contributor
    Comments (2) | Send Message
     
    I have AAMRQ and LCC. They will combed on Dec. 9th and what is going to happen to the stocks value ?
    2 Dec 2013, 03:11 PM Reply Like
  • meched
    , contributor
    Comments (2) | Send Message
     
    Go to investors hub search aamrq message board lots of answers to everyone's questions.
    5 Dec 2013, 09:04 PM Reply Like
  • Richp11387
    , contributor
    Comments (4) | Send Message
     
    how will the shares of both LCC and AAMRQ be reported once the shares stop trading on Friday? Will the various financial organizations convert the existing shares into the new company shares?
    2 Dec 2013, 04:58 PM Reply Like
  • Day Trader001
    , contributor
    Comments (726) | Send Message
     
    This is great news! No need for fear, it's a long to mid term play here.
    2 Dec 2013, 08:29 PM Reply Like
  • Freddy18
    , contributor
    Comments (4) | Send Message
     
    With this sharp drop that can only be explained by the big players, and LCC management, I do not know if I can wait for the long term recovery. Someone knew something that smaller investors did not know . Why would stockholders vote to join American if they thought a loss was in the future. LCC could have survived without this one sided merger.
    3 Dec 2013, 02:27 PM Reply Like
  • Day Trader001
    , contributor
    Comments (726) | Send Message
     
    User113

     

    If you are not comfortable holding by all means dump it, but first ask yourself what you bought it for to start with and evaluate your goals. We all know LCC has great potential and is well up for the year. I normally swing-trade options but this is one I will hold and ignore the everyday ticks of the moment.

     

    Good luck with your trades...
    3 Dec 2013, 07:01 PM Reply Like
  • stockman52
    , contributor
    Comments (21) | Send Message
     
    check out insider trading of AAMRQ at some of the financial websites.
    All the executives at American sold their shares at about $12 a share.This should tell you what they think they may get after Dec 8

     

    At the end of the day Dec 8 the AAMRQ will be canceled and all holders of the aamrq shares will be issued an amount of shares of the new stock traded under AAL ticker.
    Now here is where it get complicated.
    The amount of new shares you get is not going to be a one for one trade. The total amount of share given to aamrq holders will be based on at least 3.5% of the new company.So its just a small pot that all of the thousands of aamrq holders will get paid out of.
    So based on the new price of AAL, if AAL price falls so does the pot available to be paid out.

     

    See page two in the link below.or search for.

     

    AMR Chapter 11 Reorganization /
    AMR & US Airways Merger Information for AMR Investors (Updated 8/15/2013)

     

    http://bit.ly/IpL5e9
    3 Dec 2013, 01:08 AM Reply Like
  • wac1
    , contributor
    Comments (2) | Send Message
     
    This is true. They also established a three step increase hopefully leading to parity as US Airways received 1 to 1 in a short term.
    3 Dec 2013, 10:22 AM Reply Like
  • stockman52
    , contributor
    Comments (21) | Send Message
     
    I suggest .
    If you want to have stock in the new company . Then sell you aamrq now and when the new stock sells under AAL on Dec 09 .you buy back into the new company.

     

    How does the saying go.
    A bird in the hand is worth two in the bush.
    3 Dec 2013, 12:07 PM Reply Like
  • nun
    , contributor
    Comments (103) | Send Message
     
    >If you want to have stock in the new company .
    >Then sell you aamrq now and when the new stock sells
    >under AAL on Dec 09 .you buy back into the new company

     

    Why do you say this? I thought AAMRQ will be converted to AAL shares.

     

    Another factor is that AAMRQ is OTC now. Lots of funds are not allowed to buy such shares, but they will be buyers of AAL.
    4 Dec 2013, 10:31 AM Reply Like
  • stockman52
    , contributor
    Comments (21) | Send Message
     
    Please see like below ,on page two you will see the info about holders being paid out of a limited amount of the company.
    The unknow is at what price you can sell the AAMRQ before closing on dec8 and come out making more .

     

    http://bit.ly/IpL5e9

     

    also see insider trading here.see what the executives thought was the best route to take.
    http://yhoo.it/1aIj5fe
    4 Dec 2013, 03:48 PM Reply Like
  • User 8843871
    , contributor
    Comments (6) | Send Message
     
    Listen to stockman52 and sell your shares...aamrq is bankrupt and the shareholders are last in a long line for payment.
    5 Dec 2013, 09:01 AM Reply Like
  • lynx-147
    , contributor
    Comments (6) | Send Message
     
    Well, I did not sell my shares of AAMRQ on Friday December 8th. My question is what will I get now?
    9 Dec 2013, 02:50 PM Reply Like
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