"Be fearful when others are greedy. Be greedy when others are fearful."
-Warren Buffett
Intelligent Speculation
for the small investor
My name is Phillip Lyon and I have created this website to help the small investor. My investment philosophy is to invest in undervalued stocks that also have a speculative aspect. My website contains free stock picks and stock market commentary so check back often and tell your friends about my site.
AMR Sell Recommendation
AMR - American Airlines (NYSE) - (Closing Price - $8.57)
I recommended airline stocks, American Airlines in particular, as a play on oil falling in price from its highly speculative levels. I figured oil would pull back quite a bit after the Fed announced it would halt future rate cuts since oil has been rising mainly as a hedge against the falling dollar. However, after a very brief fall speculators have sent oil right back up in spite of bearish reasons for oil to go down.
Today it was reported oil inventories rose 5.7 million barrels last week and supplies of oil have now climbed a total of 11.9 million barrels over the past three weeks. However, oil continues to go up for reasons such as supply disruptions in Nigeria that only affect a few thousand barrels.
Due to the nonsense that is going on in the oil market I am going to recommend selling American Airlines essentially at the price I recommended it at. I should have recommended selling the news after the Fed meeting but I didn’t think oil would surge up from its bubble like levels in the face of bearish news. I will throw in the towel for now but this is a trade I will keep an eye on.
Disclaimer: I have no position in AMR.
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