Sunday October 1, 2023
 

AMR stock: It goes up and up and up, and down

We had a story in Thursday’s Dallas Morning News about the sharp rise in AMR stock since AMR, American Airlines and the subsidiaries filed for bankruptcy Nov. 29.

You actually could have made a lot of money if you had bought the stock on Nov. 29, when it dropped as low as 20 cents before closing at 26 cents, and then sold it in the following days.

As an illustration of how risky it is to trade in shares of companies in bankruptcy proceedings, we point out that AMR shares fell 32 percent on Thursday.

We also point out that the shares in most airlines that go bankrupt eventually end up with no value.

Here’s how the trading has gone since Nov. 29:

Here are two charts, one showing the daily change in value and what a $1,000,000 investment at Nov. 29′s close would have been worth on subsequent days, and the second showing daily volume of trading in AMR’s shares.


Date Closing price Change from previous day’s close $1,000,000 =
11/29/2011 0.26 -84.0% $1,000,000.00
11/30/2011 0.32 23.1% $1,230,769.23
12/1/2011 0.33 3.1% $1,269,230.77
12/2/2011 0.39 18.2% $1,500,000.00
12/5/2011 0.42 7.7% $1,615,384.62
12/6/2011 0.70 66.7% $2,692,307.69
12/7/2011 1.12 60.0% $4,307,692.31
12/8/2011 0.76 -32.1% $2,923,076.92
Date Shares traded % of all shares outstanding
11/29/2011 202,384,500 60.4%
11/30/2011 154,375,700 46.1%
12/1/2011 86,593,400 25.8%
12/2/2011 62,840,700 18.7%
12/5/2011 56,028,600 16.7%
12/6/2011 175,613,800 52.4%
12/7/2011 233,290,400 69.6%
12/8/2011 141,903,112 42.3%

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AMR stock: It goes up and up and up, and down

We had a story in Thursday’s Dallas Morning News about the sharp rise in AMR stock since AMR, American Airlines and the subsidiaries filed for bankruptcy Nov. 29.

You actually could have made a lot of money if you had bought the stock on Nov. 29, when it dropped as low as 20 cents before closing at 26 cents, and then sold it in the following days.

As an illustration of how risky it is to trade in shares of companies in bankruptcy proceedings, we point out that AMR shares fell 32 percent on Thursday.

We also point out that the shares in most airlines that go bankrupt eventually end up with no value.

Here’s how the trading has gone since Nov. 29:

Here are two charts, one showing the daily change in value and what a $1,000,000 investment at Nov. 29′s close would have been worth on subsequent days, and the second showing daily volume of trading in AMR’s shares.


Date Closing price Change from previous day’s close $1,000,000 =
11/29/2011 0.26 -84.0% $1,000,000.00
11/30/2011 0.32 23.1% $1,230,769.23
12/1/2011 0.33 3.1% $1,269,230.77
12/2/2011 0.39 18.2% $1,500,000.00
12/5/2011 0.42 7.7% $1,615,384.62
12/6/2011 0.70 66.7% $2,692,307.69
12/7/2011 1.12 60.0% $4,307,692.31
12/8/2011 0.76 -32.1% $2,923,076.92
Date Shares traded % of all shares outstanding
11/29/2011 202,384,500 60.4%
11/30/2011 154,375,700 46.1%
12/1/2011 86,593,400 25.8%
12/2/2011 62,840,700 18.7%
12/5/2011 56,028,600 16.7%
12/6/2011 175,613,800 52.4%
12/7/2011 233,290,400 69.6%
12/8/2011 141,903,112 42.3%

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