Okay, so there is a rumor that private equity is interested in buying out AMR. Let me just state for the record that, if this is true, IT WILL BE PROOF POSITIVE THAT THE PRIVATE EQUITY FIRMS HAVE GONE STARK RAVING MAD. AMR has 20 billion in debt, massive pension obligation, and is bleeding profusely!!! I always believe private equity was stark raving mad based on the REIT deals they are doing (incredibly high prices), but this will confirm my fears as objective truth.
Rumor for some hedggie to sell into. Who is sane enough to buy a domestic airline ?! If they not looking at AMR at $10/ share, why would they look at it now at near 52 weeks high?! SHORT AMR.
I honestly believe that the assets private equity has been acquiring, with or without an AMR deal, will be some of the worst deals ever done when history judges them at the end of the day. Private equity has gone wild.
============= Well historically airlines have been a much needed industry; as well as as good downtrenders like AMR has gone from $44 area to $1.44 area in past. Oil was cheaper then. DAL was another good short ,had to change its name. it got so low. I almost bought AMR after 9-11, many were ; but instead , since the polar bears/ were covering LUV, helped them buy, but that was in 9-11 month,2001 Mr. Buffet & Carl Ichan lost money money buying airline stock; think SAC fund [Steve Cohen] probably hads made much on AMR stock. I am not long or short AMR; but now they pass along fuel increases as nickname''oil surcharges'' murray, nickname ,T Turtle