Stocks to Buy based on the Best Stock Market Research
American Airlines (AMR) stock just got halted.
Who is buying AMR stock? Today, American Airlines parent AMR is surging over 80% to $0.73 after the company announced some key management changes. AMR Corp (AMR) stock crossed $0.50 this morning and has since exploded higher.
Should you buy AMR stock? I say no due to the fact that delisting from the NYSE could be right around the corner. I have seen a company in bankruptcy rally hard to the upside so many times right before the stock gets delisted. Shorts must buy shares of AMR in order to cover if the lender wants the stock back. This buying frenzy creates a short squeeze. AMR stock is most likely a very sought after short right now so shares to lend are very scarce.
You can buy and sell AMR stock for a quick trade but I would not invest long term into this company. Equity holders usually get wiped out in Chapter 11 bankruptcy. We saw this in General Motors (GM). GM has since gone public and has offered new stock and left the existing shareholders holding the bag.
Be careful out there!
Replies to This Discussion
AMR stock is tanking after it reopened from the halt, the huge decline caused the stock to trip the NYSE circuit breaker. Don't buy
AMR stock drops from $0.80 to $0.60 in 10 minutes
yea there must be someone promoting it....I remember when LEHMQ went from $0.03 to $0.35 on a promotion. I guess people don't understand that you are no longer buying the real AMR.
AMR stock futures - pre market has it trading at $1.00, down 10%. A lot can change though, especially if the market likes the rate cut news in 15 minutes.
another big day expected for AMWI, AMR, MIND?>
AMR stock halted, hit circuit breaker $0.80
AMR stock halted again, hit circuit breaker $0.72
And again..And again...
This is almost crazy, it gets halted every 20 minutes because of the large moves. I say they should put in a rule that stocks under $1.00 in the Russell 2000 should not be subject to circuit breaker halt rules.
The Fast Money traders have said everything about AMR stock that I've tried to explain in this post above. They say AMR stock is "toast" and the rally is due to short covering and retail traders buying AMR for a speculative trade. I still say, don't buy AMR and sell before It's to late.
AMR stock is down to $0.70 in pre market this morning - AMR topped out at $1.20 two days ago and is around the 10 day moving average located at $0.75. This stock is rated a sell with a price target of zero.