Gol Linhas Aereas Inteligentes SA (GOLLQ)

[capitan_voegol]

Learning Curve,

Do you live in the Brasil? I ask because you post about the economy being better than reported, which I agree is very true.

The ibovespa selloff we are witnessing is ruthless, especially to the gol. However, inflation report just published states air fares are up 17.6% yoy! We know who the biggest beneficiary is of this - THE GOL.

I preficted the Reais would reach $2.41/USD and it has - I think this is the top for $R and the ibovespa has correct 10% in 15 days! I think the election will bring Brasil together and the markets will make new yearly highs soon. The GOL is becoming more and more volatile which means a total breakdown or breakout is coming soon - since I think $5 is absurd, I will bet on breakout ($7+)

I will buy 83,000 shares tomorrow. I feel the bottom can be very close.

Remember, the GOL was $6.75 in December of 2011 before the big pop to $9 and drop down to $3s. The company is in in 1000% better situation than December 2011 and even though, the share price is ridiculous trading for $1.35 less!

In that time leverage has dropped from 20x to 4x
Cash on the balance sheet has risen 2x
EBIT has drastically swung positive
Operate margin negative to positive


All in face of huge depreciation and recession (they say) in Brasil. What happens when things get just a slight bit better??!!