Tax-selling season is officially over. There are no more acceptable excuses for GOL to stay below 30. Let's get this puppy going. The controllers' problems should be resolved fairly soon (in Brazil that means sometime before the end of the decade, maybe), and their economy is still growing strongly. I'd say that 40 would be a nice target for this year, but that's just wishfull thinking.
Well the two stories i have seen lately that concern me reguarding this stock are...
1. Varig's resergence. More competition is never a good thing. These guys are back, they are buying new planes and as aggresive as ever without their old cost.
2. Government coming down with more and more rules. Such as no overbooking and now they want the brazilian airliners to have reserve planes. This is outrageous. How is a company suppose to have a 300 million dollar plane just sitting there "in case of." Guess this is to be expected from a quasi socialist very leftist government.
Anyhow i still currently hold a full position in this stock. I still like the numbers and the growth. The fact the government is making bad rules at least effects all of the airlines in brazil equally. Forward P/E on this stock is starting to look stupid low when compared to expected growth.
The stock on GOL could double over the next 12 months but fundamentaly a few things have changed for this company over the last year and they are worth keeping an eye on.
I'm with you. I really do think there was tax selling throughout December(I did some myself), but now that's over. I give the stock 6 weeks - that's two traffic reports - to show some positive gains. If the stock continues to languish, I will have had enough. It's a great story, but there must be other factors (which I do not fully appreciate) which is keeping this stock down to 13x 2007 est. earnings. Today, so far, is a good start.