Friday, February 13, 2015

American Airlines To Benefit From Buybacks


Summary

  • American Airlines stock is down due to weak January traffic numbers.
  • The airline expects to generate attractive margins of at least 12% despite the disappointing traffic.
  • American accelerated the original stock buyback and authorized $2 billion more to spend due to the extremely cheap stock.
The January traffic numbers for American Airlines Group (NASDAQ:AAL) were far from exciting, yet plenty of reasons exist to continue loading up on the stock. The stock continues selling off with momentum traders dumping the airline regardless of the incredible valuation it offers. Investors should consider the following reasons for buying the stock now.

Read the full article at Seeking Alpha.


Disclosure: Long AAL. Please review the disclaimer page for more details. 




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