Since this stock will be worth alot less after the upcoming reorganization - isn't it a safe bet to gradually start a short position? My broker advises it, since the stock will be going down due to the share exchange in the reorg plan. Is this correct, a sure thing? Or is my broker wrong? I am not doing anything yet.
Most brokerages won't let you short the stock because you are borrowing shares from their clients. I have been following the stock and just yesterday Schwab opened up to sell short. So I jumped on it,
Your broker is right on, look at the previous airlines that filed for bankruptcy. NWA went from pennys to 6 dollars then after reorganization went to 0. Ual, Dal, Cal, same thing. When there is a Q at the end of the symbol the creditors will receive the new issue of stock and the LCC stockholders will get the new stock. The AMR public relations said there is no guarantee that the stock holders who hold AAMRQ will be included.
When it hit $5.99 time, I had already set my platform to buy another 1k shares early this morning. Now I've made an additional quick profit to what I already had. I wonder how many people got out today and lost.
Hey s3c1m7bc. I thought i might pick you brain if you dont mind. So ive been watch AAMRQ and how it has performed based on your projections. I was just wondering if you think this will head back up to 6.5 range any time soon. Also, are you 99% confident that this stock will really reach $10 by June 11?! Could you also explain why after hitting a high of 7.15 this stock tanked the last few days (for reasons other then massive sell offs and ppl taking their profits)
Also what is your take on DCTH??
WHERE IS STRAUSS AND HIS $10 TARGET
YA this is the clown that wanted all of you to email him and then give him a donation through PayPal for his crystal ball... Well I guess the ball just exploded... The merger is coming... The stock conversion is coming... And guess what, you get 3.5% of the new company and even if it remotely has (wishful thinking) a market cap of 16 billion which would be higher than the presently highest airline on the market, you get 16 billion times 3.5% or 560 million divided by 365 million current AMR outstanding shares orrrrrrrrr the grand and great total of $1.53.... And you all wonder why the stock is well lets say descending back to earth rather quickly. Its like Greenspan once said... "Irrational Exuberance" Get ready to grab a chair when the music stops Less
Sentiment: Strong Sell
After the upcoming reorganization the amount of shares given to AAMRQ shareholders will be set (considering 30, 60,etc day period). Essentially if LCC keeps rising and it is a proxy for AAG stock, AAMRQ should keep going up. What's the formula out there? ... every $1 change in LCC (now as a proxy) will yield a $1.50 change in AAMRQ. If LCC trades at $24, AAMRQ should go to over $14.
I read the AMR shareholder relations report about 2 months ago. They guarantee LCC shareholders new issue stock but only the creditors are guaranteed new issue but they could not guarantee AAMRQ shares if any. UAL didn't get any and NWA didn't get any DAL didn't get any. It was all eaten up by the creditors. You can still make money on the stock before the reorganization is complete. The aunallists call the investors buying long as dumb money. I am guessing the new issue stock ticker will be AMR. Thats what happened to DALRQ. Now DAL with NWACQ merger.
It depends on how much you pay to borrow the shares. What is really stupid is the retail investors who are buying but cant put it out on loan. A professional who buys today at $6.85 and sells after the merger at around $1 can still make money if he collects more than $5.85 in stock loan fees, the retail buy just looses $5.85 in the transaction.
How do you place shares out for loan? I have 200 non-margined shares of Apple common, in a etrade account, its not an IRA or tax advantaged acct. How would I place those shares out for loan? I plan on holding them for the next 5 years.