American Airlines Group Inc (AAL), Delta Air Lines, Inc. (DAL), United Continental Holdings Inc (UAL): Highland Capital’s Mark Okada Loves Airlines

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American Airlines Group Inc (NASDAQ:AAL), Delta Air Lines, Inc. (NYSE:DAL) and United Continental Holdings Inc (NYSE:UAL) were stocks that Mark Okada discussed as possible stocks that investors should own in a recent discussion on CNBC.

Okada said that people just need to get into spaces that they like and for him, airlines is a great place to be in at the moment. He explained:

“You pick your spots. You spend time in stocks or areas you feel great about like the airlines. It’s been great. Great trades there. That industry is consolidating and they’re certainly packing a lot of people on their planes and doing very well with that.”

According to Okada, American Airlines Group Inc (NASDAQ:AAL) is his position. He said that his firm is big on American and that they have made a lot of money on the stock. Furthermore, he said that they are still making money on American Airlines Group Inc (NASDAQ:AAL).

Okada revealed that he got in American Airlines Group Inc (NASDAQ:AAL) when it was bankrupt. Asked by Andrew Ross Sorkin whether investing in this airline will still work today, he said that it still going today. He noted the company’s ongoing developments regarding its merger with the US Airways Group saying that though there is a lot of work to do, when American Airlines Group Inc (NASDAQ:AAL) gets it all together, things will be even better.

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As for Delta Air Lines, Inc. (NYSE:DAL), Okada said that the company offers a great dividend. Furthermore, he said they are paying a small amount of their cash and earnings so the company can increase its dividend.

When it came to the topic of United Continental Holdings Inc (NYSE:UAL), Sorkin noted that those in the group like Jeff Smisek. However, he noted that United Continental Holdings Inc (NYSE:UAL), for some reason, has not had the success its peers in the industry have experienced.

According to Okada, it’s one of the situations where people hate the airlines because their history has been negative. Sometimes they get everything right and then something happens and their fortunes reverse. However, he said that the market has not seen a situation like that in the present where everything is working in favor of airlines.

Watch the video below.

 

Delta Air Lines, Inc. (NYSE:DAL) shareholders includes Crispin Odey’s Odey Asset Management Group which reported about 12.29 million shares in the company by the end of the first quarter of the year. Another shareholder in Delta Air Lines, Inc. (NYSE:DAL) is Thomas E. Claugus’ Gmt Capital which had about 8.02 million shares in the company also by the end of the first quarter of 2014.

United Continental Holdings Inc (NYSE:UAL) investors includes David Tepper’s Appaloosa Management Lp which reported by the end of March this year a stake that is comprised of about 4.65 million shares. Another investor in United Continental Holdings Inc (NYSE:UAL) is the Senator Investment Group managed by Doug Silverman and Alexander Klabin which held, by the end of March, 3.35 million shares in the company.

Disclosure: None

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