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anyone talk to their tax guy yet? i heard the capital gains was going up for 2014, well, short term/long term capital gains i think was (2013) 15%/5% respectively. and now the short term is 20% tax and those that hold for at least one year pay long term capital gains of 5%. can anyone confirm? and add any relevant info?
thank you thank you thank you, (piece of mind) thats "roughly" what i came up with, but with all the different opinions of, and interpretations of, my calculations were pretty wide 244K all the way to 301K, i was just trying to make sure i had the right number of shares and will let the bean counters and the market calculate the share price, can't thank you enough, i can be a little more patient now. now i can just cheer on the share price and wait for my 1 year mark to avoid the higher capital gains (a problem i can get used to)
well, just round numbers, for roughly what i paid and dates, PPS, but, the price per share not that important, bottom line is for my initial 13,937 original AAMRQ shares, i received a merger payout of 927 shares of AAL, and then a Dec 9th (1st of 4 payments) amount of 1838 AAL, for a total of 2765, when i crunched the numbers, i understood that Dec 9th payment was 2765 alone, not counting the 927, maybe i read it wrong. i know the next 3 payments are fluid, to a certain extent, but if i had 13,937 shares of AAMRQ on Dec 1st, how many shares should i have so far? and what would be best guess, on how many i may have April 9th-ish (after last pay out? i do the numbers and don't always get the same answer, but in the ballpark. not selling till sept 1st. and then probably half only
ok while we are waiting on earnings report, i have question. (just want someone to verify numbers) back in aug/sept '13 i bought aamrq for 2.20 pps, (30k worth) then bought 20K more at 12.00pps, just before exiting avg share price is around 4.00. anyway i own 13,937 shares of old AAMRQ, i have run the numbers, and understand the formulas. my initial payout was 997 shares, and then on dec 9th my total became 2765. the numbers given to calculate my dec 9th payout exactly match the number of shares i now own, BUT i said that i should then add that to my initial payout. 9which means i am short 997 shares) the math i did is the total shares. anyone care to use there math. or did i misunderstand. how can i help someone just to "make sure" i have the right number of shares.
this kinda bump i can get used to, already looking forward to next month
been in korea all week, can i get a week in review with whats going on with XIDEQ, whats a good buy in price, missed the 17-18, and don't see it coming back and up'ed my bid to .20, and now that doesn't look likely, hmmmm any thoughts about this. i am looking for a little activity while i wait for my AAMRQ/AAL to go long, JMO 31 by april and 37 by EOY
opinions?, is this stock a more traditional "wipe out" potential BK stock or more like AMR. just gauging my fear factor before buying in
only 7 shares different, but just trying to get my math right, and lock in what WE do know for sure, :)
OK since future amounts are speculation (hopefully accurate guesses), let me ask a question about what we do know, i looked at charts and read posts and (must be bad at math) so anyway my numbers are slightly off and was wondering what i did wrong or why they might be a lil lower than anticipated. i thought i had just under 14K shares (13,797 shares or there abouts) of course i have been printing out copies for records in case bean counters get it wrong, but checked today noticed it was 13,937 shares) cool, when i multiplied the number by 67 per 1K i got 934 shares (initial deposit) but my acct shows 927 shares. is my math just off?
it was my understanding, share price is fluctuating, but the deadline to submit the debt was nov 29th. and it is set, BK is over so it would be too late to acquire new debt (planes) to drive down assets. JMO
distribution date, new question time, anyone know the exact date of the scheduled 30/60/90/120 distribution, i had heard a couple of different dates
anyone watch all the financial channels yesterday, talk at length about how AAMRQ was one for the record books, basically the perfect storm, it will take some time to get all the numbers in, and stop gaps to keep the price stable but this will just keep the climbing in the right direction, i am totally psyched about watching that number grow each month. we even got another plug from mad money Cramer.
thank you for the example formula, i am going long, so hopefully even better, but at least people will see this first distribution isn't the last, patience is all we lack. granted not the norm, but for this kind of potential return, who was gonna sell anyway. just have to step away, at least till the first distribution, and then i think folks will calm down ( a bit) hahahah thx again
someone good with math, should do a sample conversion, of AAMRQ using, like 1000 shares of AAMRQ as an example, with AAL climbing to 27.00 and maintaining that price till april. (very reasonable ) and anyone who knows the exact dates of future conversion/deposits, please post
going insane trying to explain to friends/coworkers that the initial .0667(approx) per share price, is just that, the minimum initial payment, and the real money is the 4 monthly payments. i don't know any easier way to explain. the extra 500mil (approx) left over after everyone else is paid. goes to shareholders, cause EVERYBODY else got their money plus interest. that is where they get the roughly 12.00 bucks per share. this was in the BK papers, long ago, no one would be buying shares last week for 12.00 bucks if they were only gonna get 1.67, total
still shows AAMRQ on positions but go to unrealized gains/losses, it still shows original number of shares with the 25 bucks a share price (i know number of shares will drop with conversion) but for the moment, my total doubled hahahaaha
we are cautiously optimistic, but have been burned for decades, we have been saying "it can't get worse" for years, but with the changes come a little fresh air, the hiring of an additional 1500-2500 flight attendants next year, will be a huge improvement to reserve list. seniority is everything in the airline biz. more fuel efficient planes, reduced labor costs of "new hires" employees covering a substantial portion of their medical costs and relaxed contract rules all will make the new american, extremely profitable, some will take some getting used to. but new planes, new uniforms, new people will make for a fresh new start for all of us, (including share holders)
Meet the management team at the new American Airlines
By Andrea Ahles
aahles@star-telegram.com
There’s a new team sitting in the executive suites at the American Airlines headquarters on Amon Carter Boulevard.
While the combination of American Airlines and US Airways will keep the American name, many of the top executives will hail from US Airways’ offices in Tempe, Ariz.
Doug Parker, 52, who engineered the merger as CEO at US Airways, is stepping in as American’s new CEO to lead the world’s largest carrier, taking over from Tom Horton. Horton will remain as chairman of the new company’s board of directors until the first shareholder meeting sometime next year.
Parker, who started his aviation career in the late 1980s in American’s finance department, is the industry’s longest-serving CEO. He has run US Airways since it merged with America West Airlines in 2005, and was named to America West’s top spot just days before the terrorist attacks of September 11, 2001.
Of the top executives who report to Parker, five are from the former US Airways leadership and three are from American.
“We have to go to work on getting this team working as one,” Parker said in an interview last week. “We know each other pretty well because of all we’ve gone through, but now it’s one team instead of two. So immediately, we will be having staff meetings and things like that to get this airline running as a normal operation.”
Here’s an overview of who is now leading the world’s largest airline.
Scott Kirby
President
Previous position: President, US Airways
Age: 46
Education: B.S., Air Force Academy; M.S., George Washington University.
Career: Worked at the Pentagon and at AMR subsidiary, American Airlines Decision Technologies, before joining America West Airlines in 1995. Held several executive positions and was named president of the combined America West/US Airways in 2006.
Top of to-do list: “I have a very long list of meetings already set up at headquarters to get a more in-depth understanding. My focus will be on network and revenue issues.”
Expected challenges: “The challenge for 2014 will be to deliver on what we told everyone that we would, in terms of realizing synergies, in terms of fostering the strong relationship that we have with labor today.”
One thing that people may not know about you: Although he has lived in Arizona for almost two decades, his family has Texas roots. “My family has been in Texas forever. When my second daughter was born here in Phoenix, my father mailed me four tins of dirt and told me to put them under the bedposts so she would be born on Texas soil.”
Robert Isom
Chief operating officer
Previous position: Chief operating officer, US Airways
Age: 50
Education: B.S. and B.A., University of Notre Dame; MBA, University of Michigan.
Career: Worked at Procter & Gamble, America West Airlines and Northwest Airlines. Before joining US Airways in 2007, he was the chief restructuring officer for GMAC.
Top of to-do list: “Getting leadership in position. When you think about how you can move forward, it just can’t be done in pockets. People have to know where they belong.”
Expected challenges: “If anybody came in and said there is one biggest challenge, I would tell you they are not the right person for any of these jobs. Everything is the biggest challenge. Everything is tied for first ... you never know what’s going to hit you in the airline business. Whether it’s maintenance-related, whether it’s catering-related or cleaning-related or airport jet bridges, de-icing, any one of those things can shut us down.”
One thing that people may not know about you: He swam from Alcatraz to San Francisco with his 14-year-old daughter in April. “You get dumped in the water and swim back from Alcatraz. It was pretty cool.”
Derek Kerr
Chief financial officer
Previous position: Chief financial officer, US Airways
Age: 49
Education: B.S. and MBA, University of Michigan.
Career: Worked as a flight test coordinator at Northrop Corp.’s B-2 Division and in financial planning at Northwest Airlines. Joined America West in 1996 and held several executive positions before becoming CFO of US Airways in 2009.
Top of to-do list: “Moving into managing the intregration from a synergy perspective and working with Bev [Beverly Goulet, chief integration officer] and Robert on the integration management office to make sure we plan out how we do this to get the synergies that you expect in a merger.”
Expected challenges: “Because of the timing of the merger, we’ve had to do two different stand-alone plans for 2014. How we bring that together and how we put a forecast process in place at the new company so that we can manage costs going forward is a challenge.”
One thing that people may not know about you: “I walked onto the University of Michigan’s baseball team and played four years, lettered three years, and went to the College World Series twice,” said Kerr, who played catcher but declined to disclose his batting average. “We lost to Texas my first year. It was a grand slam home run. We lost 4-2. He golfed it off his toe.”
Elise Eberwein
Executive vice president, people and communications
Previous position: executive vice president, people, communications and public affairs, US Airways
Age: 48
Education: B.A., Lindenwood University; MBA, Colorado State University.
Career: Started as a flight attendant at TWA. Worked in media relations, employee communications and other roles at Frontier Airlines. Joined America West in 2003 as vice president of corporate communications.
Top of to-do list: “It’s getting operations on the line and start meeting the employees and the leaders that are out there and figure out how we are going to create a culture here at an airline this size that allows people to feel like they’re part of something bigger than themselves.”
Expected challenges: “The challenge is the people doing the real work of the airline — mechanics, the flight attendants, the reservationists, the pilots — they don’t sit at offices, they don’t gather around the water cooler. ... To have them feel connected to something in the same way that management does sitting at headquarters. ... It’s the age-old challenge that airlines have of connecting with people who, for them, their offices are at 35,000 feet.”
One thing that people may not know about you: Her husband is a pilot for US Airways. “I met him when he was informational picketing my first week working for Doug [Parker] at America West.”
Beverly Goulet
Chief integration officer
Previous position: Treasurer, American Airlines
Age: 59
Education: B.A. and J.D., University of Michigan
Career: Worked as a corporate and securities law attorney in Dallas for more than a decade before joining American in 1993 as associate general counsel for corporate finance. Was named American’s chief restructuring officer in December 2011.
Top of to-do list: “The first thing that we’re going to focus on is to make sure that as we start to introduce changes that we do it in such a way that is not at all disruptive to the customer.”
Expected challenges: “An airline all by itself is a pretty complicated operation and when you put two of them together it’s going to be a very large undertaking.”
One thing that people may not know about you: During American’s first year in bankruptcy, Goulet’s travel involved only two cities. “When I went back and looked at my 2012 travel, I had made 52 flights that year and they were either DFW to LaGuardia or LaGuardia to DFW,” Goulet said. It improved only slightly this year. She added Phoenix to the list.
Stephen Johnson
Executive vice president, corporate affairs
Previous position: executive vice president, corporate affairs, US Airways
Age: 57
Education: B.A., California State University, Sacramento; MBA and J.D., University of California, Berkeley.
Career: Worked at America West in several positions from 1995 to 2003. Before rejoining US Airways in 2009, he was a partner at the private equity firm Indigo Partners.
Top of to-do list: The first thing I’m going to do is apologize to my wife and son for being an absent father for the last two years. And then I’m going to try to get some rest and then I’m going to, with enormous excitement, turn to the challenge at the new American.”
Expected challenges: “The biggest challenge is finishing the really good work we’ve done with the labor unions and to make progress with respect to the labor integration.”
One thing that people may not know about you: For the last twelve years, he has averaged 150 to 180 nights in a hotel each year. “I’m hoping that the way we’ll be structured at the new American there will be less travel required. I have lived half of my life in a hotel.”
Maya Leibman
Chief i nformation officer
Previous position: Chief information officer, American Airlines
Age: 47
Education: B.A., University of Chicago; MBA, University of California, Berkeley.
Career: Joined American in 1994 in the revenue management department. Was president of the AAdvantage frequent flyer program before becoming chief information officer.
Top of to-do list: “US Airways has, I’d say, about 750 applications or systems right now and American has 750 systems and applications. In the future, we’re not going to have 1,500. So really, the first priority is to figure out how we are going to integrate all these systems.”
Expected challenges: “We absolutely have to get the customer-facing systems right. My goal is that on the day of a big integration, the customers are going to say, what integration?”
One thing that people may not know about you: Her six-year-old son gets upset with her when she can’t name the 10,000 different characters in Star Wars movies. “He can name every character in every movie of Star Wars even though he has never seen any of the movies. I don’t know how that happened, but it’s true.”
William Ris
Senior vice president, government affairs
Previous position: Senior vice president, government affairs, American Airlines
Age: 66
Education: B.S., Northwestern University; M.A., Johns Hopkins University; law degrees from University of Denver and Georgetown University.
Career: Trial attorney for U.S. Civil Aeronautics Board in the 1970s. Worked as counsel for the U.S. Senate Committee on Commerce, Science and Transportation and then as outside counsel for American while at the Wexler Group. Joined American in 1996 as its primary government affairs executive.
Top of to-do list: “We have to explain to people what’s going to happen from here on in because it’s not going to be instantaneous by any means. Day one, nobody is going to see a completed integrated airline. So I think what we’re trying to do, particularly with members of Congress, is to explain what the process is going to be and how it will take place and how long we expect it to take.”
Expected challenges: “The biggest challenge will be continuing to figure out how to operate in a period of great uncertainty with respect to the federal budget and that includes the possibility of our services being taxed more, which is being talked about right now.”
One thing that people may not know about you: His first job in aviation was with the Civil Aeronautics Board before airline deregulation. “It’s not that I knew anything about aviation or cared about it, I was just offered a lot of money. It was $14,000 a year and I could never imagine how I could spend all that money.”
Andrea Ahles, 817-390-7631 Twitter: @Sky_Talk
so far, my TD Ameritrade still shows, 11.69 PPS balance in tact, not zero'd out yet, looking forward to EOD (120 days actually) already waiting for funding acct. to buy my new shares, to add more, when we start our new AAL group
we all just upgraded to first class, feel like i just moved from a little super 80, up to the new 777-300 to boot, now just waiting for that IPO feeling as well as wait for the better capital gains tax benefit of holding for a year.
starting to feel sentimental, cause feeling sad (end of this flight isn't right word), its been a great ride, comforted by the fact the next leg of this journey will be exciting too, without the Q, and less risk, but tons of upside potential. closing minutes are here
so are we changing the name of the group, or starting a new one, for following AAL (largest airline in the world) instead of AAMRQ (biggest money maker of the year)
thanks, just confirming, so i don't have a stroke on monday, hahaha, whatever protects share price, i like, information is power, just getting my ducks in a row, and (trying) to be patient, i wasn't planning on selling now anyway, so, it doesn't matter, won't cry when this week is over. gonna have a drink and take a break till friday (unless more money funds in time)
and we shouldn't freak on fri 9th, cause if i am right, we only get the 3.5% and won't get the other 4 distributions till 30/60/90/120 days. so it will be 120 days before we know what the full conversion was. so expect a ridiculous first balance, correct?
wow, great time to get more in, even if conversion is a lil less than we thought and even if it just maintains thru 120 days, AAL shares are going to be on fire next year, it is going to be a great ride for the patient. hang tight, hold strong, for the real pay off.
great buy in time, ughh can't get account funded fast enough, if it gets to 10, it will be time to double down it will offset the shares i paid 12 for last week( my pps is around 4.40) it looks a lot more stable today and volume is way down
only a bad day, today, IF you were planning on selling today, i just tell myself, was planning on holding till sep 1st anyway. and i have no doubt it will be worth way more than this before then. i only wish i had added today rather than last week. or could add more now. Glad to be hanging with my longs. this is a lucky crowd. ready for my bounce, this will make the next four months all that much more impressive
new question time.. some people have said they have gotten letters from stock trade provider to sign letter to get their new converted stock (old AMR stock to new AAL). i didn't get a letter (TD waterhouse) anyway question is. is there a difference between the AMR stock purchased before BK filing and the AAMRQ stock? as it pertains to conversion? i purchased 65% of my shares late aug 2013, and the rest couple weeks ago) i understood AMR shares automatically converted to AAMRQ and price was market price (no conversion formula) so its all the same. the only difference is i need to hold till aug 2014 (1 year) to avoid the 15% capital gains, and pay the preferred 5% capital gains, right?
even with the few thousand shares added last week, my share price is still 4.19. so the only thing that can hurt me is if they completely wiped out shares (not gonna happen) or fell below that price (i don't see any situation that would make that possible either). airline projections are really good, the next year should be gang busters, for us. i figure the drops now are just folks not wanting lock in, and folks not wanting risk of stock drop later (120 days), and folks looking at risk reward, just taking 60% gain and willing to give up a potential (very probable) 30% future gain. GLTA please post if anyone gets any info on distribution, the more info the better, would like to hear from Detearing, again, always good confidence builder
simple example, for those still asking...
I will use AAMRQ $12 and AAL $24 through the distribution periods.
I am also using 1000 shares of AAMRQ for this example.
Sell now
1000 x $12 = $12,000
Hold with AAL staying at $24 through 120 days.
Merger date get 79 AAL shares
@30 get 153 AAL shares
@60 get 153 AAL shares
@90 get 153 AAL shares
@120 get 153 AAL shares
After 120 days you have 691 AAL shares worth $16,584.
$4,584 more for holding.
I know this assumes the price of AAL will stay around $24. No I don't know what it will do.
this is such a fear based game, i have a couple of friends saying their financial planners said SELL, SELL, SELL before 6th could/most likely will be worthless. i don't see what they are basis is, i know "traditional" BK's wipe shares out, and even with corporate accounting games, even if this turns out to be much less than anticipated, with so many factors/variables pointing to profitability, how can this not be a good deal (even if it takes a year) why would so many investors vote overwhelmingly for plan, why would so many investors still be buying in, the risk gain would be less attractive at 12.00 bucks as opposed to 2.00 bucks. but should i be impatient or nervous?
well i bought last week on a dip 12.23, so more recent dips have confused me since i haven't read but one nay sayer, everyone else is saying done deal, or at least a done deal with a few concessions, while i have no doubts it will happen, this waiting is nerve racking, but just bought some more at 11.88, so i feel better about "over-paying" (hahahah) last week. can't understand why this is not trading at 13.00 or better. planning on a great pop tomorrow, but realizing todays price doesn't really matter anyway, cause i am holding till fall of 2014 anyway. ready for a lil stability, this has been fun, but i am not cut out for this excitement . thx detearing for keeping my nerves steady
i have read that they were debating using the ticker symbol, was going to be AAG (AmericanAirlines Group) but settled on AAL (American Airlines. but have seen people referring to AAG and AAL, is it just a slip, or is there a separate ticker for the airline AAL and the umbrella corporation AAG. a little confused on what are new ticker will be, and if there is going to be 2, and what they represent
so meeting/arguements over? just awaiting decision? seemed totally in our favor by just reading tweets
anyone hear from Detearing this morning?
monday is the day we will have more info on that, the general opinion is the judge will let the merger proceed, and allow the 60 day comment period, (but NOT halt the merger) so as of now the airlines expect final approval from judge on monday, and the required details will be finished best case dec 5th, or as airlines say dec 9th. but monday will definitely be a news day to watch IMO
so y'all think a bunch of folks sold and are just waiting for the new stock, for the flexibility? and control? sounds reasonable, i still can't wait till monday (hoping for some good news then)
perhaps the 20%, is to cover the gap, in case LLC drops a bit before merger date, and thus taking aamrq shares down to the next tier, 12.00. even with little risk, as it is now you would have to leverage quite a bit of money for a decent payout, unless you were planning on holding till next fall, hoping for the 27-35 PPS estimates