Seeking Alpha

Sizing up American Airlines Group

  • The potential for American Airlines Group (AAL) is under-appreciated by the current equity values of American Airlines (AAMRQ) and U.S. Airways (LCC +1.9%), says JPMorgan's Jamie Baker.
  • The analyst sees margins for the new carrier which will rival Delta's, although planned capex spending is a bit high compared to peers.
  • AAL starts trading on December 9 unless a late legal challenge is posed.
Comments (10)
  • Chris DeMuth Jr.
    , contributor
    Comments (4039) | Send Message
     
    Here is one way to exploit the deal: Frequent Flier Mile Merger Arbitrage* http://seekingalpha.co...
    5 Dec 2013, 03:03 PM Reply Like
  • heloise8
    , contributor
    Comments (439) | Send Message
     
    I want to see how my current stock in AMRQ translate when the deal is done. I plan to hold what I have and buy more. I bought in at .87 and have nothing to lose by holding it. Besides I think the upside of AAL will be in the 30-40 pps range within, say 12 months.
    5 Dec 2013, 03:47 PM Reply Like
  • pi_fernandez@hotmail.com
    , contributor
    Comments (3) | Send Message
     
    Does it mean that on 9th Dec, holders of AMRQ shares can find any value in our shares and from then, we can sell or buy? So far in my portafolio, the bank reports the shares as freezed.
    5 Dec 2013, 08:22 PM Reply Like
  • Dsharpe
    , contributor
    Comment (1) | Send Message
     
    What should I expect to see happen to my LCC shares?
    6 Dec 2013, 12:49 AM Reply Like
  • edemel1@aol.com
    , contributor
    Comments (5) | Send Message
     
    i have been an investor on AAMRQ for more than 7 yrs.... hope that my stock doesnt become another change like Sears did when they partnered with Kmart.......
    i have lost money on Lehman Bros and still waiting for the court to pay monies owed to the investors.... part or whole, whatever.... :(
    6 Dec 2013, 09:28 AM Reply Like
  • Matthew Davis
    , contributor
    Comments (3670) | Send Message
     
    Upon the anticipated closing of the merger on Dec. 9, 2013, AMR Corporation will be renamed American Airlines Group Inc., with its common stock to be listed and traded on the NASDAQ Global Select Market under the symbol "AAL" and its preferred stock to be listed and traded on the NASDAQ Global Select Market under the symbol "AALCP."

     

    At the time the Plan of Reorganization becomes effective and the merger closes, each outstanding share of US Airways Group, Inc. common stock will be converted into one share of American Airlines Group Inc. common stock and substantially all pre-Chapter 11 unsecured claims against and outstanding equity securities of AMR Corporation will be satisfied by American Airlines Group Inc. common stock or preferred stock in accordance with the Plan of Reorganization.

     

    For further information as to the treatment of claims and securities under the AMR Plan of Reorganization, please refer to: http://bit.ly/19lGXm0

     

    -AMR press release

     

    Hope this gives you more clarity
    6 Dec 2013, 09:35 AM Reply Like
  • edemel1@aol.com
    , contributor
    Comments (5) | Send Message
     
    my question is my current stock on AAMRQ will i loose it?? or will i gain from it..
    should i sell it???
    6 Dec 2013, 12:52 PM Reply Like
  • lynx-147
    , contributor
    Comments (6) | Send Message
     
    I'm looking forward to the new American Airlines Group. I have invested in aamrq and I confident that the new AAL has a great future. I can't wait for December 9th......
    7 Dec 2013, 09:57 AM Reply Like
  • lynx-147
    , contributor
    Comments (6) | Send Message
     
    I'm looking forward to the new American Airlines Group. I have invested in aamrq and I am confident that the new AAL has a great future. I can't wait for December 9th......
    7 Dec 2013, 09:57 AM Reply Like
  • joeg1969
    , contributor
    Comments (344) | Send Message
     
    Does anybody ever do there own D&D before investing anymore?
    Long $AAL
    8 Dec 2013, 09:48 AM Reply Like
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