Seeking Alpha


Send Message
View Headcoach's Comments BY TICKER:
  • AMR Shareholders Will Get Zero In Any Takeover Deal [View article]
    Trimming the fat is always good. But, they came out last week saying that the trimming was going to start at the executive level. This is a great sign. There's always an executive VP that has an assistant that has an assistant that has an assistant. Then there's the Director in charge of towlet bowl washing, who has an assistant, who has an assistant... etc. It's time for the executive VP to actually do his job for once and skip the golf course this year. Or he can be outside looking in!
    Feb 1, 2012. 04:42 PM | 1 Like Like |Link to Comment
  • AMR Shareholders Will Get Zero In Any Takeover Deal [View article]
    I'm not worried. Why would they tell you to hold if they didn't have confidence? Yes, I know, look at Enron, I hear this all the time. But Enron was a middle man for natural gas. American Airlines is an airline company with $4 billion dollars going into the bankruptcy. No other airline in history has gone into chapter 11 with that much money on the books.

    Plus, a judge just gave them the "go ahead" to buy 200 planes. Does that sound like a airlines in trouble?

    Plus, they have just locked down new international routes with Japan Air, British Airways, and 4 other carrier to give them an international market presents. Does that sound like an airlines in trouble?

    Plus, the just opened up a new route to Argentina in which they will use this new plane. Does all this sound like a airlines that is in trouble?

    The new planes that they just order are state of the art which means less fuel consumption. Does that sound like a bad thing to have?

    Is there a chance that the stock will crap itself? Maybe! But, four months ago, I bought some stocks in the OTC (pink sheets) that went though a reorg, did a reverse split and I still made $4K.

    So can money be made in the bet. But that's the have to bet. As for me, I'm holding. Why? Too many positive indicators...that's why. No gain!
    Feb 1, 2012. 03:15 PM | 1 Like Like |Link to Comment
  • AMR Continues To Lose Altitude, Outlook Poor [View article]
    Hum...well it's up 19% today. I hope you got in at $.33 cents.
    Jan 6, 2012. 12:49 PM | Likes Like |Link to Comment
  • AMR Continues To Lose Altitude, Outlook Poor [View article]
    Hum, as you know, the judge gave the okay for AMR to buy 200 new planes. Well, the average price of these new planes is $150 Million dollars...each! Let's see, that would be...$30 billion dollar okay from the judge.
    Jan 3, 2012. 06:01 PM | Likes Like |Link to Comment
  • AMR Continues To Lose Altitude, Outlook Poor [View article]

    I had no idea that investors could not or do not have the ability to set up for OTCBB. I just thought it was the norm because Chuck doesn't limit that....interesting. I guess I am one of the lucky guy.

    But I got to thinking today (actually the other day) that if this 75,000 employee with AMR had a problem, wouldn't we by now, have heard something about about how the government has to help bail out this company as well?

    Well, why do we get news about other companies that are in need of help. Within a couple of days, it's generally on the news about how we the tax payers has to help out another company with a $5 Billion dollar loan...kind of like we did with the banks.

    Yes, I know we were on the brinks of a depression back then, but 75,000 employees. Hum...
    Dec 30, 2011. 12:51 PM | Likes Like |Link to Comment
  • AMR Continues To Lose Altitude, Outlook Poor [View article]
    Rob...come on for heaven's sake. No one trades on the OTC.BB! Please, this is where it get's fun. Just because it got delisted, don't mean it's dead.

    Example: I bought YRCW at $.06 when it was in the pink sheets and it moved up and down for months. Then it did a reverse split and jumped to $9.00 and went up to $13 (and some change) and I sold at $12.

    I guess the point that I am trying to make is, companies do come out of bankruptcy and still keep their shares. And yes, I was trading YRCW and yes it did change to YRCWD....but so did my stock as well.

    So trading under a different ticker to me doesn't mean anything. The current stock that I hold in AMR will change to whatever they will decide to call it. And when it comes out, it will probabaly do the same this as it comes out and goes above $5.00

    Why $5.00? Because Hedge Funds can not buy stock under $5.00 So the odds are pretty good that when it changes back, it will above $5.00.

    Yes I know, you are saying there is no guarantee that will happen. But it did for YRCW. And yes....there are plenty of investors that do the OTC.BB So don't worry about no one buying it.

    Just keep this in mind as it gets delisted.
    They (AMR) has $4 billion in the bank and the ability to buy 20 fuel efficient planes...even as they go through "RESTRUCTURING"!!!!!
    Dec 30, 2011. 11:42 AM | 1 Like Like |Link to Comment
  • 3 Simple Lessons To Learn From AMR's Bankruptcy Filing [View article]
    Oh, if it goes to the what! I bought COIN last week on the pinks and yesterday it was up 175%. If AMR goes to pinks, it will be fun playing it for the next 5 month's as well.
    Dec 30, 2011. 08:36 AM | Likes Like |Link to Comment
  • AMR Corporation And Avoiding Risk Aversion Losses [View article]
    Hum...interesting read. I got into AMR right after they came out with the bad news. I think it was $.38 Then I held in there until it went to $1.27 and sold at $1.13 However, tomorrow is the day that the Bankruptcy court comes out with a ruling. Why do I know this? It was posted on the internet last week. Dec 22nd's the day!

    So, what do you think the court will say tomorrow? Okay, lets look at this...

    1. AMR went into the restructuring with the most money (4 Billion in cash) then ANY other carrier that went into restructuring.

    2. AMR has a muli-billion dollar contract with two major airline manufactures for 460 new state-of-the-art planes in which both companies have said that they will work with AMR. Does a company that goes out and buys 460 new planes sounds like a company in trouble?

    3. On Dec7th the stock was going up so fast, that the NYSE had to place 4 circuit breakers on the stock to slow the increase down...funny isn't it. Who said NYSE doesn't control the market! Wonder why all of those people with sign outside are complaining about?

    4. DEC 8th AMR sells 42 million shares in the first 30 mins of the opening bell.

    5. AMR has 72,000 employees. Do you think that the goverment will let that fall? How many times have the tax payers helped the Auto Industry out of their funk and they are still going strong?

    6. AMR also has American Eagle. What if they spin that off tomorrow?

    7. Check out the Chairmans comments on this link.

    8. Here's a small example of a carrier that did okay in restructuring.

    9. In 1995 America West comes out of bankruptcy by setting up "Code Sharing" with two other airlines...Mesa Air and Continental. AMR on Dec 6th set up "Code Sharing" with $CO-A, $BAY, Openskies (Sub: $BAY), & $IBLA.

    10. On the day of Bankruptcy, VP of AMR has an employee meeting and tell employees to hold on to their stock.

    11. The only way AMR could get rid of old MD-80's leases of these planes was in a reorganization in bankruptcy court.

    12. in reorg process AMR is free to eliminate unprofitable routes, thus saving $B in long run, thus increasing stock value. So they say!

    13. AMR has plenty of cash and assets to insure that the stock will continue to trade under the exchange rules.

    14. To claim AMR's stock is worthless cause it sought to reorg under Chap 11 is not supported by any circumstances surrounding reorg.

    15. On Dec 9th: vendors are not in a rush to take their money and leave, they want to work things out with AMR while restructuring.

    16. On Dec 14th: Zodiac Aerospace announced plans to take a provision for unpaid debts from AMR. This sounds like a positive move, doesn't it?

    17. What's going to happen if AMR pushes the employee plan to the insurance company...then where will it be?

    So in closing, tomorrow will be the day. Christmas will be in 4 days. What do you think the court will do 4 days before Christmas? Do you think they will say are the pink slips you need to hand out to the employees? Hum, I guess we will find out tomorrow.
    Dec 22, 2011. 12:28 AM | 1 Like Like |Link to Comment
  • 3 Simple Lessons To Learn From AMR's Bankruptcy Filing [View article]
    Well, if you look back to 1995, you will see that America west airlines went through the same problems and came out of restructuring and bought US Air (LCC). Back then, America West airlines, during the restructuring, pulled off a great move that helped them come out of restructuring in a new light.

    What they did was set up code sharing agreements with other airlines. Ok, so what is code sharing. Let's say you live in China and you need to get to Chicago. But the carrier only flys to New York. Well, now a customer from China can now fly to Chicago, thanks to the new code sharing agreements that AMR has set up with the following Carriers yesterday.

    Hainan (China)
    British Airways (Global)
    Open Skies (GB, Europe)
    Iberia (GB, Europe, Spain, Africa)

    So what you see now is that AMR is not lying around waiting for someone to throw dirt on top. They now have agreements that will help take them Global and into countries where they could not go before.

    Plus, a couple of month's ago, they came out with a restructuring plan dealing with their old fleet of planes. To do this, they have a new contract with two major manufactures to build them 460 new planes that are fuel efficient.

    Then if you check out this video on this link, you will hear the Chairman of the company talking about the restructuring process and they direction they will be heading in.

    So I say to you, could AMR be another America west airlines?

    One of the things that is a major concern in the restructuring is the employee pension. It currently is at $18.5 billion in which it is insured by PPGC. Now, logic would dictate at in order for them to cut cost in the restructuring, they will have to move that EPP to PPGC. Which means, the government (aka: tax payer) will take care of that. Just like we did, B of A, Chrysler, GM...blah, blah, blah...this list goes on and on.

    And for what it's worth, I do believe that the goverment will step in and save 78K jobs. If not, it's ripe for the pickings for US Air...IMHO!

    And yes, I did buy AMR at .38 cents the day it dropped down. My buddy thinks I'm crazy...but he doesn't now. Let's see what happens.
    Dec 8, 2011. 06:57 PM | 2 Likes Like |Link to Comment
More on AAL by Headcoach