News about AA
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I've read enough dumb articles by this guy to not take any advice from him. Lots of things could happen, like a second stimulus. You think the government bailed out American and then will just let them go bk? It's a gamble but I'm betting AA will be at least $12 by august. Calls are cheap today with people panic selling over buffet.
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Originally Posted by rld1k
(Post 3048819)
You think the government bailed out American and then will just let them go bk? It's a gamble but I'm betting AA will be at least $12 by august. Calls are cheap today with people panic selling over buffet.
At the end of the day, the govt only worries about one thing, employment. If someone comes in and says little to no one besides mgmt will be let go, it will make heads spin to see how fast one of the legacies could be forced to fragment. |
Originally Posted by rld1k
(Post 3048819)
I've read enough dumb articles by this guy to not take any advice from him. Lots of things could happen, like a second stimulus. You think the government bailed out American and then will just let them go bk? It's a gamble but I'm betting AA will be at least $12 by august. Calls are cheap today with people panic selling over buffet.
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Originally Posted by chrisreedrules
(Post 3049158)
I do not think a 2nd stimulus is coming. And stimulus or not, the prospects of American being able to handle its situation outside of the courts is looking bleaker by the day.
I am with you. Over 25 BILLION, BILLION, in debt, less than 7 Billion liquid in the bank. All other assets for liquidity need to be sold to stay solvent, but that will last a few months at a loss of 50 million as day (and they try to spin that as a positive). Revenue way low and far below even operating cost. Stock below 10 dollars a share. No way to create any positive capital, even if they tried. The best and and only way AAL gets through this is through BK, and that’s even going to be ugly. Creditors are not just going to take a bath for AAL to try and be solvent. The only way they unload the debt, get somewhat better payoffs, and gut all the employee cost contracts is BK. It’s coming in short order, along with massive staffing cuts. AAL will not survive without it, and will barely make it through with it. I see AAL as a medium sized domestic airline with very little international flying by this time next year. Winter is coming, and it will change AAL for decades. Oh look here come the chickens to come home to roost. -You can be an optimist....wearing rose colored glasses -You can be a pessimist....and say its over -Or you can a realist....see what coming, plan for it, and be ready to face it head on. The future is bleak, but not without a light. If AAL has a way to unload its debts, it should. Otherwise it’s done in my opinion. |
OUCH!
https://i.ibb.co/JzrQn7n/D5827-CB9-6...A131899595.jpg
There’s an old joke about what the quickest method is to become a millionaire. It’s to be a billionaire...and buy an airline. Funny that Buffet never heard it... |
Originally Posted by chrisreedrules
(Post 3049158)
I do not think a 2nd stimulus is coming. And stimulus or not, the prospects of American being able to handle its situation outside of the courts is looking bleaker by the day.
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Standard heads up, it’s from seekingalpha, but with his long position, it seems he discovered some good news.
https://www.google.com/amp/s/seeking...breathing-room |
Originally Posted by rld1k
(Post 3048819)
I've read enough dumb articles by this guy to not take any advice from him. Lots of things could happen, like a second stimulus. You think the government bailed out American and then will just let them go bk? It's a gamble but I'm betting AA will be at least $12 by august. Calls are cheap today with people panic selling over buffet.
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