Article: An Airline Stock Rebounds
The second “Fool Revisited” piece this week covers another company that I’ve written about previously in this series, this time now (technically) defunct American Airlines. Despite the rosy title on this one, it wasn’t going to be a good month for the airline. In my previous article about the airline, I discussed the potential spin-off of American Eagle and how it might have been a last ditch effort to save the flailing airline. Spoiler alert: they never spun it off, and the company still ended up eventually declaring bankruptcy a month later.
The article was kind of written as a panacea for my sister, whose livelihood at the time was kind of dependent on the company. It also served as an earnings preview of sorts, with another subsequent article of mine reporting on that earnings release (it wasn’t good). I may have written about the airline again when it emerged from bankruptcy to become American Airlines Group (Nasdaq: AAL) after its merger with US Airways, but I guess we’ll have to wait and see.
Here is an ancient tweet telling my sister that she made her public debut in my article:
Since the company went bankrupt in November 2011, effectively removing all value from its previous shares, it doesn’t make sense to have one of my comparison charts. Nevertheless, the airline industry is still one that I would avoid, especially when there are so many other options out there for your investing dollars.
Until next time…
Disclaimer: I do not own currently own shares in any of the mentioned companies, and I have no plans to purchase shares of either company within the next 60 days in any account in which I manage investment funds. You can read a little about my personal investment philosophy here.
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