Some Bullish Picks from Robin Hood Investors Conference

Tom Wagner Bullish on American Airlines Group Inc (NASDAQ:AAL)

The manager of Knighthead Capital, Tom Wagner, said that the company is cheap and “will still continue to make money.” In general, Wagner considers that the whole industry will be profitable, because there will always be demand for air transportations and there is a low possibility that fewer people will fly because of threat from Ebola. The investor likes American Airlines Group Inc (NASDAQ:AAL) over other airlines because the company has just exited bankruptcy less than a year ago, and the market has not still fully-discovered the company and does not reflect the full value of the company.

Wagner also considers that American Airlines Group Inc (NASDAQ:AAL) will continue to increase its earnings. Moreover, while the fuel price is growing, American Airlines has a very low average fuel cost per mile flown.

In the meantime, the stock of American Airlines Group Inc (NASDAQ:AAL) surged by over 6% on the back of Wagner’s pitch. The company represents the largest holding in Knighthead Capital’s equity portfolio, the fund holding more than 5 million shares as of the end of the second quarter. James Dinan‘s York Capital Management is also one of the shareholders of American Airlines, with around 18.4 million shares as of the end of the second quarter.