(GRAPHIC: COD_AMR_ENRON_120711. CHART OF THE DAY. Size: 3C X 4in. (146.0 mm X 101.6 mm) Expected by 15:00.)
Dec. 7 (Bloomberg) -- AMR Corp., the owner of American Airlines, is catching up to the performance of Enron Corp.’s shares after that company filed for bankruptcy almost exactly a decade earlier.
The CHART OF THE DAY compares AMR’s stock from Nov. 29, when the company sought Chapter 11 protection, until Tuesday with Enron’s trading in the first six days after its bankruptcy petition on Dec. 2, 2001.
AMR, based in Fort Worth, Texas, rose for five straight days after plunging 84 percent on the filing date. Tuesday’s gain was the biggest, as the stock rose 67 percent to close at 70.4 cents.
“Now you get the forces of supply and demand leveling out,” Jeffrey Kauffman, an analyst at Sterne, Agee & Leach Inc. in New York, said Tuesday in a telephone interview. AMR may be headed for 80 cents to $1.20, a range that’s normal for many companies in bankruptcy, he said.
Enron closed at 81 cents on its sixth day of post-Chapter 11 trading. The Houston-based energy trader spent almost three years in bankruptcy, and its shares dropped as low as 0.1 cent before they were canceled in a reorganization.
The earlier price gap between the stocks, shown in the chart, may have occurred because Enron’s filing was less of a surprise. The stock closed at 26 cents on the last trading day before the filing after a three-day plunge tied to Dynegy Inc.’s withdrawal of a takeover bid. Coincidentally, AMR closed on the day of its Chapter 11 petition at 26 cents.
--Editors: Stephen Kleege, Jeff Sutherland
-0- Dec/07/2011 19:03 GMT
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