AMR Shares Soared: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: While analysts are touting the opportunity AMR's bankruptcy represents for peers US Airways (NYS: LCC) , Delta (NYS: DAL) , and United Continental (NYS: UAL) , investors were encouraged by American's initial cost-saving moves -- including a plan to surrender 24 shorter-haul aircraft to save on leases and storage.
Now what: American also plans to shed leases for space at Chicago's Midway airport and a base station in Kansas City, Mo., Reuters reported. Smart. Both American and United already call Chicago's O'Hare a hub, which makes Midway overflow. Yet I'm also not sure it matters. AMR's bankruptcy is likely to cancel the shares -- any play on them now is a sure loser unless you're buying to flip. Do you agree? Did you buy today? Please weigh in using the comments box below.
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At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.