American Airlines: Breathing Room

American Airlines has over $17 billion in liquidity to survive the current air passenger traffic crash.
The company has billions in unencumbered assets and a very valuable loyalty program as additional collateral for more funding.
May 8th passenger traffic was up over 25% to the highest level since March 25.
The market continues to misunderstand daily cash burn rates making the stock a buy at $10.
The story of the day for American Airlines Group (AAL) is that the airline now has breathing room. With the government aid, the company has the liquidity to survive as passenger traffic continues to grow on a weekly basis even faster than ridesharing. The market remains highly fearful due to negative headlines such as Warren Buffett selling shares, but my investment thesis is even more bullish here.
Read the full article on Seeking Alpha. 

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

Comments

Anonymous said…
LOL, good thing you're here to point out where 'the street' is wrong! And you're the only one who can see it... you must be very successful, and very rich!
Anonymous said…
I kid you not, this fucking moron Mark "Bag" Holder is an ex WorldCom accountant and was a Verizon manager before his most recent foray into being a failed PM turned click-bait article writer. He's registered out of his house in Oklahoma...but ya you should TOTALLY trust that this imbecile has an edge over 'the street'!

He's pure garbage here to feed on retail investors willing to pay him a subscription fee. Time to take out the trash.

GO BACK INTO YOUR HOLE, MARK! YOU ARE A DISGRACE TO THE INDUSTRY!
Anonymous said…
That's the thing though, I don't think anyone actually pays him to manage their money - that's why he's posting crap articles on SA all the time. He makes his money one penny at a time per thousand clicks. It's just depressing. But I guess living in Oklahoma would be depressing no matter what.
Anonymous said…
Can you imagine how shitty it must be to dedicate yourself to something for over a decade and still be this bad at the activity? And relying on clickbait pennies to pay for groceries? Fuck...what a pathetic life.

Go find a way to add value to society and fucking stop this awful nonsense you call "research." It's not for you, and you are just fooling people who stumble into your bullshit looking for a clue.
Anonymous said…
Your record on AAL is -22%, you fucking retard. Why do you keep pretending that you know what you're talking about? 20 'buy' calls over the past 5 years? WTF is wrong with you?

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