On AMR: We hate to say we told you so…

Nearly seven weeks ago, we footnoted about what seemed like an interesting disclosure at AMR (AMR), the parent company for American Airlines, which disclosed a sizable increase in the number of airworthiness directives it had received in its 2007 10-K. At the time, the stock was trading at around $14.50 a share.

Fast forward to today and the massive cancellations taking place: over 1,000 canceled flights and because this isn’t weather related — like the problem that kept me stuck in Dallas an extra day last month — American is covering the costs of hotel, ground transportation and other expenses, not to mention the cost of lots of overtime for the folks actually checking the wiring on the MD-80s, one of the aircrafts mentioned in the filing under the appropriately named “risk factors”. So perhaps it’s not so surprising that AMR’s stock has lost over a third of its value in seven short weeks.