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!
That's about $15 Million a day EXTRA to the Brazilian economy..just because Brazil "lost"...Brazil, you actually won!
Hotels, Cabs, Flights, Car Rental, Restaurants, Ticket Scalpers, Gas Stations, Mom & Pop Sores, Bars, etc.....Don't be upset Brazil that u lost..it's a blessing!
you won't stay in Business if u keep selling below cost. With TOTALS backing/reach along with Boeing's approval coupled along with Pollution emissions requirements demand for the fuel should increase. Increased Volume sales will lower unit cost. Aviation fuel represents 50% of airline cost..Any cost savings is good for an Airlines bottom line. Go AMRS.
Do you know the cost per gal. to make that fuel now? Have they improved the cost lately?
Brazilian Airline GOL to Make First International Commercial Flights With Newly Approved Amyris-Total Aviation Biofuel.Well done guys. U r in good hands!
US has the most attendees at the WorldCup. Round of 16 extended a lot of stays, a lot of flight re-secheduling. But imagine how many more will fly in for the next round! Go USA. US-Belgium: 2 to 1!!