AAMRQ-AAL final conversion formula and equity distribution plan explained

As you know, this summer I wrote two blog posts on the AMR Corporation and US Airways Group merger to explain how it affects AAMRQ stock price. Using the information available at that time I derived a formula to estimate AAMRQ stock price based on LCC stock price:

https://hiepsfinance.com/2013/05/14/the-impact-of-the-american-airlines-us-airways-merger-on-american-airlines-stock-a-curious-case-of-stock-piggy-backing/

https://hiepsfinance.com/2013/07/20/follow-up-on-aamrq-stock-price-analysis/

I know I mentioned that I would write more about the AAMRQ stock case if there was a huge surprise. And there was a huge surprise when the Department of Justice filed an antitrust lawsuit against AMR Corporation and US Airways Group, but this happened when I was entangled with a few life issues, so I had to skip.

Not to say that I am much less busy now, but I thought this case deserves another mention. Caution: math abound 😉

Continue reading AAMRQ-AAL final conversion formula and equity distribution plan explained

Hiep’s Finance ‘s final formula for AAMRQ-LCC conversion

I don’t have much time to comment much on this merger right now, so I will just go ahead and post what I consider to be the final AAMRQ conversion formula:

AAMRQ stakeholders officially receive 544.4 million AAL shares. Each AAL share is worth an LCC share. Using the approximate number of AAMRQ shares outstanding 335.5 million, and the approximate debt of $8 billion, the share conversion formula is:

Continue reading Hiep’s Finance ‘s final formula for AAMRQ-LCC conversion

Follow-up on AAMRQ stock price analysis

2 months ago, I posted an article explaining the driving force behind the stock price movement of AMR Corporation, the mother company of American Airlines, since the American Airlines – US Airways merger was announced in February, 2013.

https://hiepsfinance.com/2013/05/14/the-impact-of-the-american-airlines-us-airways-merger-on-american-airlines-stock-a-curious-case-of-stock-piggy-backing/

In light of the merger getting closer and closer and more detail being released, I wanted to write a quick follow-up on that popular post. Continue reading Follow-up on AAMRQ stock price analysis

The impact of the American Airlines – US Airways merger on American Airlines AAMRQ stock: a curious case of stock piggy-backing

So I have been investing in stocks for 3 months now. My portfolio is in good shape; I lost a bunch of money from some bad trades, and gained a bunch from the good ones. Overall, I have come out ahead and learned a good deal about the stock market. Funny enough, most of my gains have been huge gains (think 20% or more) and come from incredible trades. One such a good trade gave me more than 50% return and really boosted my confidence for investing. And I have American Airlines and US Airways to thank for that. Specifically, I have the merger deal between them to thank for the gains from American Airlines stock. At this point I have already sold my entire position in the stock, and little did I know at the time that the movement of the stock was such a unique case in the world of investing.

Continue reading The impact of the American Airlines – US Airways merger on American Airlines AAMRQ stock: a curious case of stock piggy-backing