Eerily similar to Enron stock back in December 2001, AMR stock rose for five straight days after plunging 84% after filing bankruptcy on November 29. On Tuesday the stock for AMR showed its largest gain after rising 67% to close at $.70. It’s interesting to see the similarities between Enron Corp. filing bankruptcy back in 2001 and how the stock responded to AMR today.
On the sixth day of trading after Enron entered into a bankruptcy filing, Enron stock closed at $.81. The bankruptcy for Enron lasted approximately 3 years while its shares dropped as low as one cent before all the stock was canceled in the bankruptcy reorganization. Just like AMR, Enron stock closed at $.26 on the last day of trading before the bankruptcy filing.
Hopefully this is coincidental and AMR will be able to exit after filing bankruptcy leaner and stronger. Only time will tell whether one of the former largest airlines in the US can withstand the economic pressures along with the bankruptcy filing. Will there be a merger in the future for this ailing airline? It seems they are poised for a merger or even take over by a larger airline.