IB Net Payout Yields Model

American Airlines: Insulated Bargain

American Airlines generated huge Q1 pre-tax profits while the market focuses on PRASM declines.
The airline continues to dramatically reduce the share count as the low stock valuation greatly enhances any share repurchases.
The stock is insulated from a large earnings decline at this valuation.
On Friday, American Airlines Group (NASDAQ:AAL) dropped 4.5% after reporting Q1 earnings. The market again appears obsessively focused on short-term PRASM (passenger revenue per available seat mile) issues and missing the big picture.
 Read the full article on Seeking Alpha.

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


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