Dueling Fools
December 9, 1998
The American Weigh
AMR price (12/8/98): $66 1/4
Coffee, tea, or Duel? All three choices are bound to give you a caffeinated kick. This week we take off on a bout over American Airlines' parent company AMR <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AMR)") else Response.Write("(NYSE: AMR)") end if %>.
Chris Rugaber (TMF RFK) thinks we should buy American. Rick Munarriz (TMF Edible) is feeling a bit unAmerican this week. So fasten your seat belts, make sure your open mind is locked in the upright position -- this Duel is ready to taxi down the runway.
And don't miss this week's Duel Flashback, where we look back at our averaging down throwdown.
You Get to Vote!
Once you've read the arguments and the rebuttals, it's your time to cast your vote. We'll tabulate results each week and revisit them from time to time to see whether you were right! As always, we invite you to join us in the Dueling Fools Message board to continue the duel.
[Any suggestions, comments, praise, or flames, please send them along to the Dueling Fools Team.]
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The Bull... Tired of looking at nothing but high-flying growth stocks with big fat price-to-earnings (P/E) multiples? American Airlines' holding company, AMR Corp., provides a down-to-earth alternative. (And even if you're not tired of the aforementioned stocks, AMR is still worth a look). Its growth may be slim for the next year or so, but so is its P/E, which is slightly below 9. In addition, it is poised to gain market share, has a fast-growing travel-reservations subsidiary, and is ahead of its competitors in key measures of airline business efficiency. Continue... |
The Bear... In a few years, the airline industry will be replaced by a faster and more reliable mode of transportation. We'll ride in pods moving at the speed of light on a hyper-tech highway of light. Okay, just kidding. Air travel is here to stay. I can't argue that what the future holds for bullet trains or sci-fi human teleportation will make airborne masses of titanium and gauges obsolete. I can't tell you, with a straight face, that airplanes will be replaced the same way they took over the motorized car and railway system earlier this century. Continue... |
Results for last week's Harley Davidson Duel
| Answer | Percentage |
| I can't make up my mind | 4% |
| TMF Max's Bull argument |
63% |
| TMF Parlay's Bear argument |
18% |
| They were both excellent |
14% |
| They were both lame |
1% |