Here is the deal.
-Conversion calculation changed and was not favorable to AAMRQ holders. Not by much
-People are selling because they dont want to wait for 30,60,90,120 day allotments
-These allotments are UNKNOWN as they are dependant on AAL price. Who knows what will happen to AAL
-It is still tied into LCC pricing right now. LCC goes down so does AAMRQ
-LCC is going down as hedge funds are dropping the PPS to buy back at a lower price. On monday when AAL is listed and AAMRQ/LCC are removed, expect a BIG pop in AAL. This is why I have bought 3K of LCC at these prices. I get 1:1 of AAL shares/
With AAL price to be based on LCC closing price on Friday, AAL Value JUMPS as it now will value in AAMR. In my opnion, LCC is the better choice. JP MOrgan gave it a $37 PT this am. Big upside!
Sold all 22K shares weeks ago and keeping 1,700 for giggles
YEs missing half of the article Our 12 month PT of $30 for LCC shares is based on a standalone earnings model and is arrived at by applying just under a 10x P/E multiple to our 2014 fully-taxed EPS estimate of $3.25. However, if we were to use the merged airlines' financial projections from AMR's publicly-available plan of reorganization, the implied enterprise value/2014 EBITDAR multiple is a 20% discount to its peer group. Assuming parity results in another $10 per share of upside to our LCC PT of $30," he said.
Spade. Wrong Again!
“It’s also worth, I think, putting some perspective on this industry and where we are when you think about these earnings. As excited as we are about them, the reality is within the same press release … one of our accomplishments of late is that the company’s credit rating was raised one notch from B minus to single B. While we’re happy to see a credit rating increase, a single B company still needs five upgrades to get to investment-grade.
“So, as well as we’re doing, we still have a company that is nowhere near investment-grade, nowhere near where other companies that merge and their businesses are.
“We know the merger is good for competition. But also I just want to make sure everybody understands that what we’re really talking about here is merging a single B credit with a bankrupt credit.”
Reason for delay in @AmericanAir bankruptcy hearing is all speculation. But main lawyers not in courtroom and neither is judge