American Airlines’ parent company, AMR Corp., announced today that it had filed for Chapter 11 bankruptcy protection. AOL DailyFinance summed up the effect on investors:
AMR’s investors got a nasty little shock after the announcement, as the company’s stock price slid from a close of $1.62 per share on Monday to $0.23 on Tuesday morning. Over a longer timetable, AMR stockholders have had an even worse year: In January, the stock was trading at $8.85.
Here’s how that last sentence looks in a line graph, compared with the overall performance of the Dow Jones Industrial Average (via Google Finance). The Dow (red line) has remained largely flat, while AMR (blue line) has declined 95%:
See larger version here.
Not a good day today for BlackBerry maker Research In Motion, according to this Bloomberg piece:
Research In Motion Ltd. plunged in extended trading after missing analysts’ estimates as sales of aging BlackBerry smartphone models slowed and the company shipped fewer PlayBook tablet computers than projected.
RIM, based in Waterloo, Ontario, fell as much as $5.75, or 19 percent, to $23.79 in extended trading after closing at $29.54 on the Nasdaq Stock Market. The stock had dropped 49 percent this year as of the close of regular trading.
This line chart, made in Google Finance, shows day-to-day percentage changes in stock prices, allowing us to see how RIM has compared this year with its competitors (Apple, Motorola, Nokia, et al.).
RIM is the bright blue line at the bottom:
See a larger, interactive version
I spent the morning replacing old door knobs and power outlets around the house. These items were purchased from both Lowe’s and Home Depot — America’s two retail home improvement giants. The stores in our neighborhood are next to one another, and I sometimes can’t decide which one to choose.
Perhaps investors feel the same way? This interactive chart, made with Google’s finance service, shows both companies’ movement on the New York Stock Exchange since Jan. 4, 2008. Lowe’s is blue; Home Depot is red. Notice that they fall and climb at similar times:
You might think that these spikes and dips relate closely to the performance of the Dow Jones Industrial Average. The two companies follow the trend generally, but they rise and fall together:
Perhaps this has to do with the price of lumber or something. Thoughts?
Larger versions: 1, 2