Diamonds and Dogs
Insider buying at American Airlines (AAL) has the stock up 4%. Chairman and CEO of American Airlines Group, Douglas Parker spent $1.4 million to buy 50,000 shares of his stock on Tuesday signaling to the market the stock is attractively valued. Four other executives bought stock for a combine $800 million. American Airlines has come under pressure this spring losing a number of Boeing planes due to safety concerns. However the industry is heading into their busiest season of the year as the price of oil has pulled back. The industry should have a good summer.
GameStop (GME) stops their dividend. The video game store retailer is down 35% to a 16-year low after mixed earnings and the elimination of their dividend to strengthen their balance sheet and provide increased financial flexibility and optionality. The analyst at Jefferies said GameStop's legacy retail model is at "increasingly odds" with how the gaming industry has evolved online. Another analyst cut his price target saying the business "burns to the ground." Something you never want to hear about a stock or business you own.