GOL Linhas Aereas Inteligentes SA (ADR) (GOL)

NeroSagetrade (52.11) Submitted: 2/28/08 4:10 AM : Start Price: $17.79 GOL Score: -48.38

GOL Linhas Aereas Inteligenes services the South American market in two segements, with one servicing roughly 60 destinations within Brazil and the other hitting 15 major cities within South America. GOL is essentially a low-cost air company operating in a foreign country, another RYAYY. GOL has been putting on a show over the last few years with impressive revenue growth and unwavering profit growth. Passenger load levels have been steady or slightly increasing and their 2008 forecast looks very promising. Specifically when the company highlighted expectations for 2008, operating margins jumped dramatically from the 4-5% we saw this year to 13-15% in 2008...thats huge!!! With a forward earnings expectations of just over $2 per share in 2009, GOL is trading at just 9 times its earnings which is relatively inexpensive for the low-cost airfare sector (most of which are mired in steep losses right now). This is a perfect time for entry as well with oil spiking over $102 per barrel. When Boone Pickens turns negative on oil, I listen, and low cost airfare will see the biggest boost in their stock price when oil prices do indeed retreat 15% from their highs.





Nero


Sagetrade

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