Listen, you know the drill here. So does the street as AAL pares its loses significantly. When you see 'tard like behavior such as this from one of the greenest of airline analysts, a bottom is nye.
Doug Parker is a very smart man and NIRP = low energy and many years of cheap debt ahead. AAL will be $100+ in 2-3 years. Once he vacuums up as many shares as he wants this will become a hedge fund hotel, low float, huge volatility and high share price.
And what the total authorized is going forward, rate of repurchase per last several q and guesses on how much is getting repurchased this q? 550m shares right now is less than a $15b mkt cap; I believe the day aal went public it was $23 x 680m shares which means this stock is now at its IPO valuation after earning nearly 2/3s that amount in profit in 2 years. Doug's strategy is brilliant because interest rates are much more conducive to refinancing debt and buying back stock at these levels and revisiting the debt after the share count is reduced to 4-450m in my opinion. Shorts are wrong on this one and I love the piling in by dumb hedge funds, going to be some moves here akin to 2008-10 to counter this decline real soon. I own 3750 stock ave $32 and 125 Jan 2018 $30 calls. Think this stock is worth minimum .5 price to sales in 18 months with just $5 eps. $42b revs x .5 = $21b mkt val / 450m shares end of 2017 = $46-47 stock that trades at 9x eps still below historic norms. Once debt is extinguished aggressively in 2018 and beyond this is a company that trades at 1x price to sales or $40-45b mkt cap with $5-6/share eps = $80-100 stock imo