Cart boy Edmar has done well at his job alongside cmdr. Kakinoff - the GOL will now turn a profit due to capicit and strateg discipline.
This dip I view as final; the last very good chance to buy. I believe the stock will bottom around $5.60, which is an absurd 20% correction in very short time.
The GOL is carrying in excess of $2,500,000,000USD of cash an equivalents.
Anyone who knows this story knows that cart boy Edmar set the budget for a new economic reality and actually hedged for currency volatility such as what we've seen in last weeks.
The market of stocks is looking past the adjustments and giving you gift horse buying opportunity here at $5.70.
The next leg up will be violent and quick to a new high!
Sentiment: Strong Buy
GOL’s August 2014 Highlights
* Domestic Load Factor reached 78%, 11p.p. up over the same month last year, giving a year to date domestic load factor of 77%.
* Domestic Demand continued to post an expressive growth, increasing 10.5% in August and 9.1% year to date.
* Domestic Supply fell by 5% in August and by 2.7% year to date.
* The Company transported 3.1 million Passengers in the Domestic Market in August, 15.6% up versus August 2013. Year to date, GOL transported 26 million passengers, 11% more than the same period in 2013.
* International Demand grew by 52%, driving an increase of 11.7p.p. in the international load factor in August, which came to 71.1%.
* Net revenue per available seat-kilometer (PRASK) continues to grow year-over-year, mainly reflecting the increase in the load factor. The fares practiced in August accompanied the scenario of economic slowdown in Brazil.
It figures...MS upgrades this stock only to sell it off 15% in one week. Upgrades mean bad things, good news mean bad things, and bad news means bad things. Manipulation again by the GD J**s as usual. The market is BS. You truly cannot believe anything you read. How do you make a decision based on lies.
looking good guys
"....’m going to show you the list, with some additional data to give some context, but remember this: the only reason these stocks are here is that they underperformed the market massively for the last four years, and have had a TURN in performance in the last year.."
As you can see clearly below, I said the positive operate income would come in @ $10-20M USD. Who is your daddy?
Now, for "cart boy" Edmar; he MUST GO due to hedging losses of $R 40,000,000.
PEOPLE, THE GOL IS VERY VERY CLOSE TO A FULL RECOVERY. THE LEVERAGE RATIO DOWN TO 4.6x FROM 15X A YEAR AGO!
AND THIS STOCK WILL SAY GOODBYE TO THE MID SINGLE-DIGIT FOR A LONG TIME.
Last chance to buy today and tomorrow.
So, let us talk about Cmdr. Kakinoff and little cart boy Edmar's performance for the quarter.
A) first and foremost, the Copa Mundial went off beautifully and even though LATAM flopped, the Gol had exceptional performance and exceed managements expectations for the period
B) the capacit and strateg continue to unfold beautifully with all metrics running at high end or exceed expectation:
-FOREX BRL/USD $2.27 ave for 2Q vs $2.40-2.50 expect
-Fuel QAV $R 2.55-2.60 vs $2.70 expect
-Load factor HIGHEST IN COMPANY histor for the period
C) how do you get the equity out of your 54% stake in $R 5.5 billion company THE SMILES? You pay $R $540 million divident! This is $250 million USD to the balance! Meanwhile, the smiles remains @ $R 4.5 billion market cap so stake worth still better then $1 billion USD!
D) cash on the balance; while some debt be retired this period and last, it should wash with the divident from THE SMILES. What this mean? It mean financial leverage ratios WAY DOWN AGAIN while record cash position remains on the balance!
C) consumate the deal with Air Frogs (France I hate!); the $100 million USD to the balance and equity investment are secure!
Look at all of this in terms of where the company has come in 2012; the stock was $6.75 in 2012 when the ambition was simply a dream! Now it is all the reality and it is $5.75! The upside here is very good, and even though Brasil remains like a slug, it will improve at some point AND ALL OF THIS SO FAR HAS BEEN ACCOMPLISH IN JUNK ECONOMY!
Think what happen to the GOL when GDP resumes to 3-4%!!!!
BUY ANY DIP BEFORE OR AFTER THE EARNING AS THIS WILL BE A GIFT!
The Smiles trades only on IBV - July 7 it paid $R 8 in distribution and the GOL owns 54% of the public company. So brilliant is the CMDR Kakinoff - could he ever sell any of The Smiles stake? NO. Can he make the peridodic distribution? YES!
Look at the GOL balance sheet:
$R 3,000,000,000+ cash
$R 2,000,000,000+ stake in The Smiles
$R 400,000,000+ divident coming from The Smiles
$R 100,000,000+ new investment from Air Franc/KLM
As you can see, the liquidity lever(s) and cash are $R 5,500,000,000+ !!!! This is USD $2,600,000,000!!!! By comparison, JBLU has just 1/3 the cash and investments and 2x the market walue!
The GOL will be worth $9-12 this time next year! Don't doubt the Capitan - you will miss big time!