a reply to: Jchristopher5
Marketwatch.com, September 7, 2001....(a slew of bad news from American Airlines)
12:48pm 09/07/01 [AMR] AMR NOTES 'POOR' ECONOMIC CONDITIONS, 'FALLING' DEMAND
12:49pm 09/07/01 [AMR] AMR SAYS DEFERRING JET PURCHASES BEYOND FIRM ORDERS
12:47pm 09/07/01 [AMR] AMR'S AMERICAN RETIRING 5 MORE 727 AIRCRAFT EARLY
12:48pm 09/07/01 [AMR] AMR: AMERICAN TO RETIRE ENTIRE 727 FLEET BY END OF 2002
12:46pm 09/07/01 [AMR] AMR SEES Q3 LOSS 'CONSIDERABLY LARGER' THAN Q2'S
12:47pm 09/07/01 [AMR] AMR ANTICIPATES 'SIGNIFICANT' LOSS IN Q4
12:49pm 09/07/01 [AMR] AMR SAYS CUTTING 2001-02 CAPEX BY NEARLY $1.2 BLN
12:50pm 09/07/01 [AMR] AMERICAN AIR FEELS SQUEEZE OF FUEL PRICES, LABOR COSTS
1:07pm 09/07/01 AMR warns of wider losses - William Spain
2:44pm 09/07/01 Analyst: Airline Stocks Face At Least Another Bad Quarter
2:51pm 09/07/01 [AMR] AMR DOWN 3.4% AT $30.08 FOLLOWING Q3 WARNING
4:04pm 09/07/01 Boeing stock rating cut over commercial growth - August Cole
Let me guess, marketwatch.com was in on it????
Here is a link to the news release from AA...
Dallas Morning News, September 8, 2001
BYLINE: By Terry Maxon
AMR Corp. warned investors Friday that it would lose a lot more money this quarter than last quarter and would have a "significant" fourth-quarter
If the losses materialize as expected, it will mark the first time since 1993 that AMR has posted a full-year loss. It will also be the first time
since 1992 that AMR has lost money in every quarter.
AMR, parent of American Airlines Inc. and TWA Airlines LLC, said it was grounding another five Boeing 727s early in response to poor demand. That
means that its entire Boeing 727 fleet will be retired by the end of 2002 -- a year ahead of the original schedule.
Since early 2001, AMR said, it has cut its capital spending budget by nearly $ 1.2 million for this year and next.
"We'll continue to take prudent steps consistent with this very tough operating climate," said Tom Horton, AMR's chief financial officer, in a
statement. "American's financial strength and flexibility are important assets at a time like this."
AMR made a less drastic warning Aug. 13 when it said it expected to lose money for the third quarter and full year 2001 "if current economic
Airline analyst Ray Neidl with ABN Amro Securities LLC said he was struck by the firmness of AMR's warning Friday, without the ambivalence of earlier
"They're more or less throwing in the towel and saying they're seeing no changes through the end of the year," Mr. Neidl said.
AMR shares closed down $ 1 to $ 30.15, off 3.2 percent in trading Friday on the New York Stock Exchange, and most other airline shares also finished
Wait....let me guess....the Dallas Morning News was in on it too right???
Then there is this....which is no longer available online....
September 9, 2001
Vol. 12, No. 28
Stocks Skid On A Jump In The Jobless Rate. This Week, We Take To The Air
This past week, stocks were pressed to the downside -- with the highlight being Friday's blue chip decline. Wall Street was surprised by a spike, to
a four-year high, in the jobless rate. And the market took its lumps. This week, I see opportunity for you to have fun and profit with an airline
play. So, without further ado, here's…
This Week's Option Recommendation
Buy the AMR October $30 put for $170, or less, good this week.
Shares of AMR Corp. trade on the New York Stock Exchange under the symbol "AMR". The symbol for this option reco is "AMRVF". American Airlines
closed the week at $30.15. The 52-week range for AMR is $27.62-$43.93. My downside price target is $22-$26.
The major airline is under pressure. At $25, each $30 put would have $500 of intrinsic value. If AMR is at or above $30 on the third Friday in
October, your option will expire worthless. That is your risk. Set your stop-loss at $100, to preserve capital, in case my expectations go awry.
That's buy the AMR October $30 put for $170, or less, good this week
An actual advisory for investors to place options on American Airlines.
Not that you will read it, but this page has links to quite a few stories about the situation.
Once again, the only people that still believe that the put options had ANYTHING to do with the attack are those who choose to remain uniformed. I
mean, in Mar-Apr of 2001, there were TWICE as many options on United Airlines...and nothing happened. Using your logic, the attack should have been
on March 11, 2001.