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You know I started to say "no way. We haven't had the 5 day VWAP determined yet!" Then I decided to look at my Schwab acct. and it shows an additional 1583 shares added on to the "unrealized gain" which is identical to the first distribution. Yet it doesn't show up in the " transaction history" report.
Something squirrely going on. Not something necessarily nefarious, since so many eyes are watching, but there's more to the story. Perhaps a new hire intern data entry guy who just really doesn't care.
Anybody else with a different brokerage seeing anything unusual?
First of all, great move buying a boatload at $3.59. No doubt we all are doing great. But do remember that we aren't getting 1 for 1 on the conversion. We'll likely be in the ballpark of 75%. Was thinking about the same situation myself today. I averaged about $7/sh on a boatload. Most of which is in IRA form and I won't have to worry about taxes. A lot of that was in my American Airlines Pilot pension that was closed and handed over to us. It took about 9 months to get it to us after it finally was closed... hence missing out on a good market run. AAL made up for it though!! By a lot... Good luck to us all.
JML/Rocco,
I can't imagine us ever hitting 1-1, but do you realistically see a conversion in the 80-90% range? Have you found any more info regarding that cap at $35? I would have never dreamed we would be there this early in the game.
Coming from the AA side, listening to the new execs, it sounds like there a lot of low hanging fruit to pick for profits. 1)cutting losing routes. 2) re-working hubs to increase connections.3) putting more efficient a/c on old S80 routes. 4) They're in the process of removing 1st class seats on 777 and replacing with a lot more Business class seats. That's not a huge number to the bottom line but it will make CASM look better.
On the "other" side are contracts with us union folks and integrating seniority lists. Pilots have a outline of what we'll have the next few years and will be negotiating adjustments. I don't think the changes will be large enough to greatly affect profitability. FA's are being offered another buyout, which will have a short-term profit hit but replacing older FA's with newer FA's cheapens payroll.
Of course the big unknown is oil. Airlines have been doing okay with the $90-$100 range. Limiting seats and ancillary charges have lessened the blow. A drop to $80 would be a boon since prices will NOT be coming down appreciably.
That's all I know. and then some.
Taxes were indeed taken out for employees. The taxes were witheld and then the number of shares left after paying the withholding taxes were then distributed to employees. A number of us pilots were fortunate enough to load up on aamrq and therefore recouped some of our lost assets of ch.11. I wished more had taken the plunge. You can tell the pilots who did load up. They've been seen picking up a tab now and then! (A rare event for pilots!). The old joke was - how do you get a mile of copper from one penny. Have two pilots fight over it. Cheers to JML DADx4 Rocco and others for all of your posts. It's been a smoooth ride...
I saw that post. I think JML was responding to a post by asliceofeinstein. If I remember correctly, Einstein(a prolific poster) said it may be 1-1. Or at least .85-1. JML responded basically that.85 would be great and we may get in to the cap. I just tried to read the court documents from a few post back. Maybe it was the late hour but my eyes glazed within the first 5 sentences. WAAy over my head.
Be thrilled at .80-.85. Do NOT expect 1-1.
If it did happen,....give the extra to charity or something!
I think they're using all the brain cells they have to keep the operation going through one of the worst series of cancellations ever. It's not totally normal for there to be so much up in the air, but there is a lot of new stuff going on. I'm sure people are still trying to find their new offices. Maybe after than, they can start working on the books. They WILL come out and all will be fine. Be coo.
Speaking of American and 9/11, AA is starting the first class of new hires in 12 years. Included in that class is the son of one of our pilots killed on 9/11. Guy was a real class act and missed by everyone. His son it seems is cut from the same cloth. Lot of happy pilots at AA seeing that happen.
I'd hardly call a negative 50cents a "tank" Especially after being up a couple of bucks in two days last week. It's to be expected. I have received 5500 shares from the distributions so far and haven't sold a share. No real intention to either.
My advice to you would be go back to the early days of AAL or AAMRQ and see the various numbers. There have been some that were called "conversion " formula's and the slightly more complicated stuff that would tell you how many shares you'll receive. Look for info from JML or Junkmanlong. His input has been invaluable to us here. On average, your 12,000 shares of AAMRQ will likely be in the 7500 share to 9000 share range. Distributions, as you may know are being spread out over 4 months. Best guess right now is we'll total nearly $18-$21/share of AAMRQ. Pretty much a windfall. (unless you bought AMR a decade ago for $30.) Yahoo message board was pretty good but as of the last couple of days's it's been invaded by some nasty posters. Avoiding those, you can find Junkmanlong on there as well with his up to date information.
Junkman, you helped make my Christmas a more relaxed one. Yours and others information helped me understand the entire conversion process and hang in there a few weeks ago. Thanks for all of your work and explanations for everyone here. I've tried to spread the word at AAL amongst the pilot group. Several of us have done well with our AAMRQ. The pilots and FA's distribution is locked in at the $15 LCC equivalent, thus our unions have gotten no benefit from the gain.(or at least the ones that didn't buy AMR/AAMRQ/LCC.
Merry Christmas everyone.
fair post Nick, but you're wrong. As a pilot/union member, we are "capped" at a maximum of $1B or 13.5% of the company.. which ever occurs first. The company's worth $17B now, hence it will take fewer shares to pay off debtors, including union members. They / WE are only entitled to our supposed losses up to $1B and no more. The extra market value after unions and debt holders are paid off, is for SHAREHOLDERS.
JML-JunkManLong has several posts describing the formula to determine the number of shares of AAL you'll receive for AAMRQ. You can use his formula and change the AAL price for each of the 4 pay periods. JML is obviously very knowledgeable of this process.
Coma patients are still groggy. Obviously several people with enough brain matter to invest in AAMRQ have been in a coma the last several weeks. They haven't been able to read and understand any of the thousands of posts and articles that explain what is happening to AAMRQ shares. If you're on here whining about "Losing" your shares of AAMRQ, drink some coffee and do about 15 minutes worth of reading from the googler. You'll like what you read.
Oscar. Chil-lax. You still have your investment. Obviously you didn't do any homework on your AAMRQ purchase. You still have your shares. Your brokerage company has to go through a process to re-distribute them. Some brokerages show about 6 numbers representing your AAMRQ. Some don't show anything... RIGHT NOW. They will in the next couple of days. It will show up as AALCP. That is it's being transitioned over to AALConvertible Preferred stock. You will get a small payment initially of .0665 per share of AAMRQ. at 30 days, you'll get about 25% of what you are owed. then the same thing the next 3 months. You'll be getting a nice bonus compared to where the stock was last Friday. Assuming the price stays up. You will be a happy camper, most likely, at the end of the conversion. I'd suggest going back to more of this board to learn more about the conversion process.
JML,
First of all thanks a lot for all of your number crunching. I feel like I've picked up a lot of info from your simple formula's. Do you come up with this with a brain more complex than mine or do you find it somewhere. I never found it looking at some of the court documents.
I've got a question though. In your last example where someone had 1000 shares of AAMRQ, your two numbers came out somewhat different. If you converted over to AAL shares(603 shares) and then got $25/sh, you'd have $15,075 On the other hand, if you just use the conversion to get the value of AAMRQ now, you come up with $13.38 x 1000 shares or $413,380. I figure I'm missing something here.
Thanks..BMC
The .0665 is only the "INITIAL distribution" The bulk will be spread out over the next 120 days. Even a Seeking Alpha guru got stumped on that one. We're gonna be cool..
hobo, you may be confusing the conversion bit. Each share of LCC will convert 1 for 1. Not AAMRQ. There's a magic formula that will tell you what your AAMRQ is worth in the conversion. And last post was right in that you only get 3.5% back next week, and the rest will be spread out over the next 120 days. Assuming there are no dramatic drops in the new AAL share price, there will be a nice return on investment. Good luck
Hey guys/gals, Just found this group a few days ago but it does seem like some very civil people! I likely have missed your answers on this stuff..I'm waaaay long AAMRQ for several months now. I've seen the conversion formula for LCC x 1.582 then subtract 22.56. I know we'll have to wait 120 days to get all of our value, but does that same conversion formula hold true after the LCC goes one for one with AAL? I really think we'll see $30 from LCC in the next few months if the merge ops go smoothly enough. If the formula holds true after tomorrow, a $30 AAL price would equate to $25 for our AAMRQ shares. sweet! There could be some mutual fund buyers who want to get on the low P/E that LCC has right now. Just getting up to DAL/UAL P/E puts us on the path to $30. Best of luck to us ALL!