American Airlines - Looking To Land A Great Entry Point

|
About: American Airlines Group Inc. (AAL)
by: The Value Investor
This article is exclusive for subscribers.
The Value Investor
Long/short equity, special situations, value
Summary

American Airlines has good ambitions for its workers, customers and shareholders.

The company trades at a very low earnings multiple, but as always peak earnings in a cyclical industry need to be discounted for ¨normal¨ conditions.

As shares look much more reasonably priced based on my estimate of normal earnings, while current earnings are still very strong, I am happy to initiate a small position.

American Airlines Group (AAL) continues to fly lower amidst worries about an increase in supply putting pressure on fares, while competition remains fierce, labour markets are tight and fuel costs are rapidly on