Replies to post #10966 on American Airlines Group Inc (AAL)

[CRichard]

I don't get where the confusion is to be honest. Downside has increased while upside has decreased. When the stock was at $6.00, the upside was massive. Now that we've moved up, the chance that the merger does not goes through and the stock falls to $3.50 or so STILL REMAINS.

Remember that the stock was upgraded when it was around $6, and a PT of $9.50. That's a 63% increase, with a 42% potential downside. On the other hand, it opened today at $9.60, with a downside still of $3.50 (a 64% downside), with only a 15% or so upside.

Now those of us that think the merger is an inevitability, and that it will be worth more than $10 post merger think this is faulty thinking. But it makes sense. The upside gets more and more limited as the stock continues to rise, while downside continues to increase.

Plus they're trying to push the stock down to steal your shares. I aint budging!

[beachlover]

Because the stock has moved up so much in the past few weeks.
Risk-Reward

[slacker01]

If you read the story he is saying the the run up has already been included in post merger PPS (for the most part) but nothing has been said about if the merger doesn't happen. So he is emphasizing a limited upside from where we are and a non merger price drop possibility. A scare tactic to be sure. Funny thing is a story like that can make just that happen because if you look and see all airline stocks have face planted on his story. Analyst and writers always manipulate the price of stocks with the power of the pen regardles of how true thier story is. This guy is a dipstick and knows absolutely nothing of the merger yet write about it like he is an expert. IMO for what it is worth.