So we got downgraded by GS earlier this week and their "reasoning" for doing so was because we were behind with the integration process and our 6 month outlook was not as good as UAL, DAL and LUV.
Ok, now, let's think for a moment;
1) Although it is true that we have not finished the integration process it is also true that we are just 17 days from COMPLETE integration. We have been on schedule and without any issues with all the other milestones that have already been met, like integrating reservation systems and other integration milestones.
Why would GS use this logic NOW and not at an earlier date when we still had much more to achieve?
NOW when we are just a couple of weeks away they downgrade based on THAT? Fishy!
2) The same day they issue this downgrade AAL finalizes ANOTHER contract with their employees. Insuring no labor issues for years to come. This is from DOW Jones newswire:
Dow Jones Newswires 05:15 PM ET September 30, 2015
17:15 EDT- American Airlines, which closed its merger with US Airways in late 2013, has made fairly quick work of reaching combined labor agreements with its unionized workers. It already has joint pacts in force with its pilots and flight attendants and today says it reached a tentative deal with 14,500 gate and ticket agents and reservationists represented...
3) They based it on a 6 month outlook which is ridiculous to me because I don't think I have EVER seen an analyst release a 6 month outlook, I could be wrong, but have any of you ever seen a 6 month outlook used to downgrade or heck even upgrade a company?
Today we hear that UAL is having trouble reaching an agreement with THEIR gate agents (in part because of AAL's contract) and their pilots wrote a letter criticizing management.
OK Wall Street, do your magic! Continue to buy UAL and sell AAL!
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