AAL

American Airlines Group Inc.

Industrial/Transportation, Event Driven/Special Sit


Presented:01/08/2014
Price:$26.91
Cap:$7.00B
Current Price:$12.03
Cap:$7.90B

Presented

Date01/08/2014
Price$26.91
Market Cap$7.00B
Ent Value$11.93B
P/E Ratio12.46x
Book Value$2.90
Div Yield0.8%
Shares O/S260.00M
Ave Daily Vol13,610,000
Short Int28.40%

Current

Price$12.03
Market Cap$7.90B
American Airlines Group Inc., through its subsidiaries, operates in the airline industry. It operates an average of approximately 6,700 flights per day to approximately 339 destinations in 54 countries from its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C. The company was founded in 1934 and is headquartered in Fort Worth, Texas.

Highlights

Shares of American Airlines represent an event-driven opportunity now that the merger has closed. The deal was unique in that a smaller public airline acquired a larger public airline under bankruptcy protection, requiring a merger structure that will result in a great deal of stock coming to market in a relatively short period of time, depressing share prices. Shares are therefore attractively priced relative to AAL’s strong fundamentals, and the risk-reward appears highly compelling.

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Idea Discussion

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