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Fly High With Gol Linhas Aereas Inteligentes (NYSE: GOL)

Submitted by gregweaver on Mon, 01/14/2008 - 02:21.

Gol Linhas Aereas Inteligentes S.A. operates as an airline company in South America and Brazil. The company has taken a significant, starting in mid December, losing nearly 20% of its value. On January 3rd, the P&F turned bearish with a triple-bottom breakdown.

Despite its short term weakness and decrease in earnings estimates for 2008, GOL offers significant value at the $19-$21 range. The Brazilian economy is due for strong growth in 2008 which should help the company meet and probably beat earnings expectations. The mean expectation for the long growth is 19% compared to 2% with the airline industry as a whole. This makes its forward P/E of 12.7 look down right valuelicious.

GOL's recent actions to exercise and advance its options for purchasing planes from Boeing (NYSE: BA). This is a bullish indicator for the fundamentals of the stock.


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