Replies to post #18347 on American Airlines Group Inc (AAL)

[slacker01]

We are all under the impression that the hedge funds and large institutional investors have a self imposed moratorium against owning stocks of companies that are fresh out of bankruptcy (within one year). Since the merger date is Dec 9 we assume all will be well after that date because there will be a whole new batch of buyers out there waiting to join us.. We can only wait patiently to find out for sure.

[Ralph Canine]

On Dec. 9th it will be the one year anniversary of the merger and the emergence from bankruptcy. At that point, from what we have been able to gather from certain news articles, Hedge Funds, will join the trading of AAL stock. In the meantime, they are staying out of it because of a self imposed one year ban on trading in any stock that emerges from bankruptcy.
AAL is the least institutionally traded of the airlines. Because of this, there is more volatility, more day trading and more mom and pop investors that sell at the drop of a hat.
If Putin has a bad day, they sell.
If ISIS or ISIL (or whatever they call themselves now) says they will bring down the white imperialist devil, they sell.
If Parker farts, they sell.
If we have a record profit quarter, they sell.
If we increase PRASAM by 5%, they sell.
If AAL announces $1 Billion buyback, they sell.
If AAL announces a dividend, they sell.
You get the picture. That would somewhat, probably stop, when less panicky investors that will see the true value and HOLD the stock, like Hedge Funds, step in and buy. That's why I can't wait for December!!!