Some of the stocks he initiated a buy rating on include Alaska Air Group, American Airlines parent AMR, Continental Airlines, Delta Air Lines and United Airlines parent UAL, because those stocks are highly leveraged to an economic recovery, will benefit from balance-sheet deleveraging, focused on growing margins rather than gaining market share and attractively valued.

FORBES

Airlines were up to, with Southwest gaining 5.9%, AMR Group (which owns American Airlines) up 4.8%, Jet Blue gaining 4.2%, and US Airways up 9.5%.

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In the transportation sector many are speculating that American Airlines ( AAMRQ) and US Airways Group ( LCC) will merge, maybe as early as next week.

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He stepped down after the parent of American Airlines filed for bankruptcy protection late last year and is now a partner at Emerald Creek Group.

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