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Rahul asked in Business & FinanceInvesting · 1 decade ago

Would you buy AMR stock now???????

Hey all stock experts, this is the first stocks i'm thinking to buy and need your input... AMR (American Airline) is at $8.68 today, should you buy this stocks???

Thanks

4 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    Absolutely not. Airlines and autos are two industry I would stay far far away from. The rising cost of fuel and fare competition, combined with all the issues that come from having the majority of your employees unionized is just a bad combination.

  • Anonymous
    5 years ago

    the previous posters (EDIT: and Eddie W who's a later poster) are all clueless idiots. AMR has filed for financial ruin 11 financial ruin protection. In a financial ruin 11 financial ruin, the effortless inventory is rather much consistently cancelled. the only time whilst that's no longer cancelled is whilst each and all the debt - including the main subordinated, junior, unsecured piece of crap in the full capital shape - is paid off. AMR unsecured debt is at present advertising at 15 cents on the greenback. meaning that the industry thinks that the debt will get well in effortless terms 15 cents according to greenback no longer $one million on the $one million or everywhere close. meaning that the debt holders will grow to be the hot fairness holders and the previous fairness holders could have their inventory cancelled. I choose those bankrupt shares did no longer commerce. each time a intense-profile business enterprise is going bankrupt, there are a majority of those human beings on YA who do no longer comprehend financial ruin and pass purchase the inventory. It occurred with GM, Blockbuster, now AMR. whilst the choose cancels the inventory or the SEC suspends figuring out to purchase and advertising in it, a majority of those human beings will come whinge on YA approximately how poor it relatively is they misplaced their money. So - no - making an investment in AMR isn't even a huge gamble - it relatively is a definite way of dropping your money. you would be plenty greater desirable cautioned to take your money and purchase Lotto tickets with it. Edit: John W keeps posting this nonsense "in case you may positioned money right into a distressed business enterprise, you purchase their convertible bonds. The choose could convert them into shares of the hot business enterprise in accordance to the suggested conversion.". The convertible bonds are rather much consistently between the main junior bonds in the capital shape. as a consequence, the converts signify a quite great team as there are $460M properly worth of 6.5% 2014 converts. in case you bought those, you does not be figuring out to purchase it to get new inventory (it relatively is the booby prize) - you would be figuring out to purchase them to combat for restoration because of the fact the backside guy on the totem pole who has a huge gamble. that's no longer the type of interest that amateurs could play.

  • 1 decade ago

    Absolutely NOT!! Not for any time frame investment, short, medium, or long term!

    In fact, if the price drops another $0.40, I might just Short it, if my broker has any that is shortable!!

  • Anonymous
    1 decade ago

    No way man

    stick all your cash into commodities

    sooner or later we're gonna be buying milk with silver =P

    cheers(:

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