LogFAQs > #941093423

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TopicStock Topic 7
HeroicCrono
06/22/20 7:16:32 PM
#25:


Moonroof posted...
Put $25k into BAC at $24.62.

Meanwhile, AAL is down 2%+ after hours. Legit starting to worry this stock will not recover, and will forever float between $10 - $16.

They said they are diluting the stock by issuing up to $1.5B in new shares. For it to fall 8% after that announcement is normal. I think long term if it doesn't go bankrupt it should recover. With these airlines bankruptcy has always a possibility since the virus started, which is why the stock is cheap and there is so much profit potential. People don't like risk, so they'll sell their airline stock for less than it's worth in an expected value sense, and that's why we buy - to get an edge. But the BK/dilution risk is real. Now dilution is much better than BK of course.
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