CitationLover
Aw, Nuts!
- Joined
- Feb 26, 2003
- Posts
- 3,316
I don't put my money in any airline stock. That being said, when you look at all of the valuation metrics, AMR is just plain scary compared to AAI. AMR's shares are over 29 times book value. Compare that to AirTran's shares at only 2.5 times book. AMR's debt/equity should scare any good investor, also.
All kidding/joking aside, AirTran's debt is quite high also (total debt to equity of 211.87). You are correct regarding AMR (56.46 total debt to equity), however AMR also has $4bln in cash and just paid down $1.5bln in debt. ours is no better at 201.73 and will only get worse if and when a fleet replacement is announced.
You must be a brave man if you invest in individual stocks. My risk tolerance is fairly low.
Share price is meaningless. Shares of Berkshire Hathaway have cost 5 figures for many years now simply because Warren Buffet doesn't like stock splits. Share price doesn't mean anything.
He knows more than me.
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