American Airlines Group Inc (AAL)

[HIS MONEY]

Why does US Air want to merge with AMR so badly? Seems odd if AMR's balance sheet was truly as bad as you perceive it to be? Seems to me the merged company could use the financing it has recently allegedly obtained to pay off the old debt like GGP did. IMO there are many scenarios in which common could prevail here.

In my experience it is very unusual for a BK stock PPS to rise this steadily, on relatively high volume, over a sustained period of time, unless market sentiment concerning survival of existing common weren't also on the rise concerning facts. Speculative runs are short, sweet and quickly reverse.

Take EKDKQ (Eastman Kodak) for instance. This is a perfect example of traders understanding the shareholder deficit and watching asset sale returns closely enough to judge likelihood of common survival. I believe there are plenty of investors watching AAMRQ too, and that these investors believe the possible merger with US Air, and the NOLs tied to existing common, increase likelihood of common survival, and the PPS reflects this. Yes, this is very speculative, that is a given. Trade at your own risk. Shorts love to short BK stocks, for obvious reasons. But, in the instances where the common does survive, a MOASS will cost shorts dearly while reaping once in a lifetime gains for those who went long.

All of the above was written in my opinion. Do your own due diligence.