AAMRQ could move much higher!
Update: Update: AAMRQ has exploded skyward after it was announce that AMR Corp. and US Airways Group Inc. reached an antitrust settlement with the U.S. government to allow their $17 billion merger to proceed with only limited concessions, paving the way for a new global airline colossus.
US Airways and AMR, parent of American Airlines, agreed to give up space at several major airports across the U.S., most notably reducing their combined daily departures at Reagan National Airport near Washington by…
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I have been writing and recommending AAMRQ to my subscribers since the stock was trading in the $0.40 range and the stock has performed with spectacular results; from a start point of around $0.40 per share AAMRQ has quickly risen to well over $3 per share and looks to be headed significantly higher.
AMR Corp. (PINK: AAMRQ) hit an all time low of $0.20 shortly after filing for bankruptcy in November of last year. In the months that followed the stock traded flat in the $0.50 range before falling to lows of $0.35 in early November 2012 as The Company received a string of negative publicity caused by the fallout with their employees and their employee's labor unions. Since then AAMRQ has seen been moving up steadily and is just about to break out of its range.
American Airlines parent Company; AMR Corp. filed for bankruptcy last November while AA continued to operate as normal. The U.S bankruptcy system gives Companies much leeway in restructuring their debt obligations and every year thousands of Companies successfully emerge from Bankruptcy. The AA bankruptcy which was the biggest in the US in 2011 follows a long line of airlines who have filed for bankruptcy over the years; a testament of how difficult this industry really is with total US Airline losses of $80 billion since 1979.
AMR Corp never planned to liquidate AA, it was always planned as a reorganization because AA is still a very valuable brand. They control the high traffic routes and hubs such as Miami, NYC and Dallas. Also management has strong incentives to reorganize; the bankruptcy process in the US typically gives current management up to 10% stake in the new Company and in this case that stake is worth hundreds of millions.
American Airlines has taken some hard blows to their reputation in recent weeks as the continued fighting between the Companies top management and their pilots and employees and their unions has resulted in more than half of AA flights being delayed including numerous reports of terrible service. The whole thing came to head when the author Gary Shteyngart famous for novels as “Super Sad True Love Story” and “Absurdistan.” wrote a New York Times Expose about his recent experience crossing the Atlantic on an AA flight.
Now that a deal between the labor unions and AMR is in the works the stock price has started to move up on accelerated volume.
AMR Corp. (PINK: AAMRQ) American Airlines American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,500 daily flights. The combined network fleet numbers nearly 900 aircraft. American's award-winning website, AA.com, provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the oneworld alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own.
Together, its members and members-elect serve more than 900 destinations with more than 9,000 daily flights to 150 countries and territories. American Airlines, Inc. and American Eagle Airlines, Inc. are subsidiaries of AMR Corporation. AmericanAirlines, American Eagle, AmericanConnection, AA.com, and AAdvantage are trademarks of American Airlines, Inc. AMR Corporation common stock trades under the symbol "AAMRQ" on the OTCQB marketplace, operated by OTC Markets Group