GOL Linhas Aereas Inteligentes SA (ADR) (GOL)

4dell (< 20) Submitted: 5/27/07 6:22 PM

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I DONT SEE HOW--THEY BOUGHT A COMPETOR AIRLINE THAT WAS ALREADY DEFUNCT BUT HAD SIMILAR PLANES--BOEINGS AS IS THIERS--THE ONLY OTHER COMPETITOR -TAM- USES AIRBUS. VARIGS PURCHASE ALSO GAVE gol NEEDED SLOTS AT FOREIGN AIRPORTS GOL DIDNT HAVE BEFORE. GOL CAME FROM NOTHING JUST A FEW YEARS AGO WITH A GOOD BUSINESS MODEL AND IS EVEN OUTDOING LFL AT LAST LOOK. I EXPECTED SEAT UTILIZATION TO GO DOWN AND NET PROFIT TO GO DOWN ACCEPTABLE AMOUNTS UNTIL VARIG IS FULLY ON LINE. I EXPECT IT MAY GO BRIEFLY BELOW 5-27-07 PRICE BUT WILL RAMP UP IN AUGUST AT LATEST. ANY NEGATIVE US "ANALYSTS" NEWS SHOULD BE CLOSELY EXAMINED TO SEE IF IT IS IN CONTEXT. YOU MAY EVEN HAVE TO GO TO FOREIGN NEWS SOURCES AND ANALYSTS FOR UP TO DATE NEWS ON GOL AND HOW THE BRAZILIAN MARKETS AND OUTLOOKS REALLY ARE. US GUYS ARE STILL PUMPING CHINA MARKETS OVERALL AND US LINES IN PARTICULAR. BUY GOL--SUPPORT BOEING--BUY TAM--SUPPORT EUROPE.

GOL TOOK A HIT WITH LAST YEARS CRASH NEWS--IT WASNT WIDELY REPORTED THEY WERE NOT CULPABLE TILL A DAY AGO. GOLS MARKET AREA WAS CONSTRAINED BY POOR INFRASTRUCTURE--AND THEY HAD A YOY 1ST QUARTER LOSS IN TOTAL REVENUE-- BUT AN OVERALL NET REVENUE INCREASE--BRAZILS PRESIDENT WENT ON THE WARPATH TO CORRECT PROBLEMS WITH AIR TRAFFIC IN MARCH AND THAT WAS NEWS MISSED AT MOST US FINANCIAL WEBSITES.

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