Boiler Room: The Official Stock Market Discussion

[Domingo Halliburton]

Somebody with the knowledge please help your boy.

American Airlines is going to Merge with US Airways, just like Delta and Northwest merged, and United and Continental. The Fed Gov sued to stop the merger. I dont think they will stop them from Merging in the end, EU already gave American the Okay. The stock for American dropped from $5.xx to $3.xx today. I am thinking about buying this stock assuming that when the airlines merge the stock will jump like UAL did. Now what confuses me is the AMR stock is not available because they filed some bankruptcy protection in 2010 or 11. The stock name is AAMRQ, whats the difference? If I purchase AAMRQ and the airlines merge and the stock goes up to lets say $8 will it remain AAMRQ or become AMR? Basically what I'm asking is when I invest in AAMRQ and american does good, they wont leave me out of the benefits? Thanks ahead of time.

The only reason I wouldn't touch AAMRQ is because it's on OTC markets. LLC trades on the NYSE.

anyways it sounds like the govt is dead set on blocking this I would be careful.

Apparently the current merger plan looks like this:

The merger plan calls for a full recovery for all of AMR’s creditors, equity stakes for most American employees and a 3.5 percent aggregate equity stake for existing AMR shareholders.

like any bankruptcy the creditors get paid first. it sounds like AAMRQ shareholders would then divvy up a 3.5% stake in the new company (whatever that's worth).

 

[Bernie Madoff]

Xerox I'm in!
Currently trading at 10.49...

 

[50CentStan]

The only reason I wouldn't touch AAMRQ is because it's on OTC markets. LLC trades on the NYSE.

anyways it sounds like the govt is dead set on blocking this I would be careful.

Apparently the current merger plan looks like this:


like any bankruptcy the creditors get paid first. it sounds like AAMRQ shareholders would then divvy up a 3.5% stake in the new company (whatever that's worth).

Thanks for your reply, could you explain in short what's the OTC market and why it's different from NYSE?

 

[Broke Wave]

@ocmfII drop some knowledge in this thread for us young bloods breh, waddyaknow waddyasee?

Thanks for your reply, could you explain in short what's the OTC market and why it's different from NYSE?

OTC means Over the Counter... it's a direct dealing between the buyer and seller essentially through the Nasdaq. That is where you find microcap stocks like penny stocks, and you'll find derivatives and certain types of swaps and complicated types of bundled up derivative financial products.

 

[-G$-]

@ocmfII drop some knowledge in this thread for us young bloods breh, waddyaknow waddyasee?



OTC means Over the Counter... it's a direct dealing between the buyer and seller essentially through the Nasdaq. That is where you find microcap stocks like penny stocks, and you'll find derivatives and certain types of swaps and complicated types of bundled up derivative financial products.

What up?

 

[Broke Wave]

Thanks for your reply, could you explain in short what's the OTC market and why it's different from NYSE?

What up?

A lotta peeps in this thread wanna know more about investing/trading/markets, maybe you could tell us what essential's dudes should know in terms of perhaps the stock market, which is what I think a lot of people here are interested in, from your institutional perspective.

 

[-G$-]

A lotta peeps in this thread wanna know more about investing/trading/markets, maybe you could tell us what essential's dudes should know in terms of perhaps the stock market, which is what I think a lot of people here are interested in, from your institutional perspective.

OTC means "over the counter" and that means that the securities clear directly from dealer to dealer and don't trade on a formal exchange like the NYSE. Most bonds and derivatives trade this way because they are not technically listed. A lot of institutional trading is done this way because the coutnerparties dictate the terms of the agreement and don't necessarily need the formalities and depth of liquidity associated w trading on an exchange. I'll read more of the thread as I can and add some commentary. I'm on vacation this week so won't be sitting in front of the computer and posting as much as I normally do.

 

[Domingo Halliburton]

yeah otc are usually companies that don't meet the requirements to trade on the NYSE or Nasdaq. Many of the companies do not make audited statements available and dont have to report to the SEC. its hard to find reliable info. This is where you find the pump and dumps. I'm sure somebody like AMR isn't hard to find info on though

 

[aliG]

Xerox I'm in!
Currently trading at 10.49...

Why big on XRX?

 

[Domingo Halliburton]

dammit I should of not doubted myself and got in XIN when it was 5 dollars. hell I even liked it last year. I just keep hearing about a Chinese housing bubble but I don't think the Chinese govt is going to let it happen. If it drops at all I'm going to take a position and I'm definitely taking a position in MPC, probably today.

 

[aliG]

dammit I should of not doubted myself and got in XIN when it was 5 dollars. hell I even liked it last year. I just keep hearing about a Chinese housing bubble but I don't think the Chinese govt is going to let it happen. If it drops at all I'm going to take a position and I'm definitely taking a position in MPC, probably today.

I myself was thinking about pulling trigger on Marathon Petrol.

 

[Bernie Madoff]

Why big on XRX?

Beat earning last 4 quarters. Cash flow surging. Acquiring lots of different enterprises.

 

[Domingo Halliburton]

Beat earning last 4 quarters. Cash flow surging. Acquiring lots of different enterprises.

are they paying down a bunch of debt or something? I don't really see how their cash flow is surging unless they just wrote down a bunch of debt or something.

 

[aliG]

Have any of you used the textbook rental company Chegg? It is about to go public under the ticker symbol CHGG. Any thoughts on whether this is a good pick or not?

 

[ill]

Have any of you used the textbook rental company Chegg? It is about to go public under the ticker symbol CHGG. Any thoughts on whether this is a good pick or not?

Don't know anything about this company or industry BUT back to school is a month away so if they go public before then, I would imagine that hype would drive the stock higher simply off back to school. People spend crazy money at the end of August/start of September.