This explains why the stock has been moving up. I might be wrong but AF management has been setting the bank up to be sold but there may be no buyers at the price they want. I don't think anyone wants to sell at below 1.5 x book so AF may start to buy back stock or increase their dividend. AF stock is not trading at significant premium to make an acquisition accretive enough.
Things are about to get very interesting!
AF has for a long time has been prepping the bank to be acquired. They haven't made acquisitions, bought back stock or increased their measly dividend.
If and when the SIFI threshold is increased banking M&A will pick up. Because of their low cost deposits NYB may make a run at them. Either way AF will get taken over for at least 1.5 x book. I think 23 or 24 will get it done.
Be patient - it is only a matter of time!
This #$%$ is trying to hinder congress from raising the SIFI threshold above 50 billion. Fed members and even Obama aren't against this. I hope she doesn't have the influence over other democrats to vote against raising the threshold. Warren is an extremist who is a bad as an extremist Tea Party member. No wonder we have a dysfunctional congress!
This selloff is just an example of the Wall Street Charade. The manipulators move AAL up and now are moving it down so they can buy it cheap and move it up again. AAL moves up 20 - 25 percent and moves down the same percentage. Any time now the bell will ring and the stock will start to move up again. Rinse and repeat. That is how the " money changers" make their money - follow the bouncing ball!
The reason the charlatans give for oil going lower is supply. Yesterday they moved it up over 62 as if things had suddenly changed in the oil market.
Just another example of manipulation to make money. Drop oil and bring the transports up. What a joke - this makes wrestling look more believable!
The increase in oil prices is just the scripted game of Wall Street. They bring down oil and oil stocks to an exaggerated level and bring it up to make a whopping profit. I bet they bring it up to a new extreme level and short it and the stocks on the way down.
One has to follow the way these charlatans make money to profit in the market. This is more of joke than wrestling. The sad part is most of the public don't see through this farce!
Is the premium higher than the 47% increase in oil? Going forward the airlines are going to have to start increasing fares. RASM hasn't been that good lately.
Also, it appears AAL is buying back stock today to defend the share price.
Even if it was for six months or a bit longer it would still be cheaper than the 47% increase in oil from the lows. Stubbornness is never a good thing!
I know Parker is adverse to hedging oil but it was way oversold and should have gone past his stubbornness and hedged oil at 40. Now shareholders and employees are going to pay - thanks!