So you buy when it is red, and also buys in when it is green claiming that it will go even higher. You are either buying in 10 shares at a time or you own 41% of the company now.
Since airline stocks are volatile, there are always weak hands coming in looking for quick profit and this won't be the last time that AAL drops over 10% in a week.
I am not against buying on dips, I am just saying just to wait out a bit longer and pick it up at a cheaper price while other people have been screaming to buy dips since 39-40.
People are just dumping their shares for the past week, unlike the previous drops, this is still happening after a week of record high earning + dividend/buy back plan announcement. You thought it was a good deal buying at $40, well now you can buy it at 37 and possibly lower.
Some argue that it bounced back from 31 to 39, but this is different. The price dropped due to harsh winter while oil was on the rise, and the price bounced back when the earnings went better than expected despite all the flights being canceled. If oil is below $100, record high profits, dividends, and buy back can't even keep the stock above 40 then I don't see how Q3 will make this a $50 stock.
Q2 is suppose to be the best quarter for airlines since it is summer time, now if investors are dumping shares for the best quarter then what do you think will happen for Q3? It is really hard to beat Q2's results/plans so just keep that in mind.
You must have own this stock for too long lol, this is no longer the AAMRQ since it was a penny stock, the explosive pop stops back in March and this can go sideway for another 4 months.
Keeps breaking down to new low every day and 38 - 39 seems possible before investors take another look at AAL. If record high profit, dividend and buy backs cant keep investors excited then I don't know what will. AAL goes red when other goes green, and also goes red when others are red.
I remember the last conference, the stock was also down and people blame that AAL does have share buy back or dividend. Today the entire airline sector is red again, it will take people few days to realize that this company is doing great, extremely undervalue.
It was at 45 and now it is red for 1%. I think people are jumping out of AAL to hop on the UAL train since it had a 68% profit climb. To be honest it was not hard to beat UAL's earning considering that their revenues are still negative from just last quarter.
I said that there is a serious price manipulation in this stock, and the MM will try everything they can to keep the price down and get back slowly. They sold around 40k or so shares to trigger a panic over another airplane missing, which is BS and just to show you how many shareholders are swing trading this one, especially people who does not know much about AAL looking for a quick profit.
A lot of people know about the plane crashes, tension in middle east + ukraine than the AAL Q2 report to be honest. Another plane disappeared this morning, but I believe institution will absorb any drop today.
Remember it is not even 8 yet, usually premarket is most active after 9 and some after 8. With dividend coming out, this stock will hit 44 today (or at least this week).
Lets hope that the traffic number tomorrow helps reversing the price action instead of triggering another sell off to 37. No one knows how low AAL can go but I know it will be higher than 39 in 2 months.
People have been buying on "dips" since 42s. I wouldn't be surprise if it keeps going down for another day or two because the entire sector is panicking.
Last week there was a mass killing in middle east and then a refinery got captured, didn't stop the stock from running up 4 dollars (instead of keep going down). I do agree that this stock is very sensitive to news in the short term, especially that 400 mil lawyer fee, a 3% dip.
I think that people sold early so that they won't be affected by the last distribution (if there is any) Monday, and big firm absorbed everything in the last few minutes. Plus the Tuesday court date about lawyer fees may be a factor too. News like that create a great buying opportunity.