Seeing how the company has stated they will give the current shareholders about 1.15 a share when exiting from bankruptcy the current value is pretty bizarre. They should exit fairly soon. The stock got pushed by groups such as JP Morgan who are just ripping off the public with this. At least shareholders should get something if the creditors are paid in full. This market cap is way above where it will be as they exit bankruptcy. Kind of amazing.
Scanning through your other posts, its evident you’re attempting to scare enough impressionable investors to maybe get a dip so you can buy – I hope an investor with some time on his hands collects your IP address and takes you to court for monetary damages. Acting in bad faith to spread misinformation for the purpose of financial gain is a crime.
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Clearly you have no idea how the planned reorg and exit works as respects AMR shareholders. To be fair, nothing is yet cemented, however, there is a proposed formula that, without getting technical, is based on valuation (at 3.5% share count) plus labor claim plus LCC share price at exit. Simply stated, as per some analysts, if LCC is 15 at exit date, AMR shares are valued at 1.15, if LCC is 18, sh gets roughly 6, if LCC is 20 (which seems to be where she is heading), AMR sh gets 9. Please do some DD. I think you will find it interesting and possibly worth the risk.
Stockkman ... you mentioned, "there is a proposed formula that, without getting technical, is based on valuation ..." You should be more technical for the sake of the board ... get technical.
For those looking to read more, a good starting point would be the 2-13/14 2013 sec filings (the 8Ks). Here is a "copy and paste" out of one of them.
"The abovementioned provisions of the support agreement relating to the treatment of prepetition unsecured claims against the Debtors and existing equity
interests in AMR under a plan are summarized as follows:
• Holders of existing AMR equity interests will receive an aggregate initial distribution of 3.5% of the common stock of the combined airline on the
effective date of the plan, with the potential to receive additional shares if the value of common stock received by holders of prepetition unsecured claims
would satisfy their claims in full;
• So-called “double dip” creditors (i.e., holders of prepetition unsecured claims as to which both AMR and American Airlines are obligors, either directly
or indirectly) will receive shares of mandatorily convertible preferred stock equal to the full amount of their claims. These shares will convert into
common stock of the combined airline at 30 day intervals during the 120 day period following the effective date of the plan, based on a formula tied to
the market price of the common stock of the combined airline;
• So-called “single dip” creditors (i.e., holders of prepetition unsecured claims that are not guaranteed) will receive a combination of shares of the same
class of mandatorily convertible preferred stock as the “double dip” creditors will receive and shares of common stock of the combined airline; and
• American Airlines’ labor unions and other employees will receive an aggregate of 23.6% of the common stock of the combined airline ultimately
distributed to holders of prepetition unsecured claims against the Debtors."
What kind of math is that and where are you getting you data? At 15 a shares it is 13 percent of the value of LCC then if LCC goes tyo 20 a share you get 45% of the share price??? I hope your right because I am invested but how does that make any sense???
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That does not make sense. I can not imagine current shareholders getting even close to that. Look at the market cap of LCC and the math does not work. If the combined value after merger is worth 20 billion, then the shareholders should get a couple bucks a share and some change. I have no position and have friends with the company who are being told the percent they are getting which is more than the shareholders will get, is not worth a whole lot. 9 bucks a share sounds absurd.