Hi I am actually the guy who asked him the question ON his program. I am surprised he recommends selling at such a low price. Yeah I understand the stock has tanked in a few months but look at the LONG term potential on this one when was the last time it was THIS cheap? My freind Brazil is booming in all sectors tons of expats and tourism heading that way. In MY Honest opition this stock will skyrocket starting end of this year going into next year. Not to mention World Cup being hosted in Brazil in 2014. There are only 2 major airlines in Brazil and Gol is the 2nd. I am waiting for a low and buying!
Actually, there are 3 major airlines in Brasil. Don't forget about Azul. Started and run by David Neeleman, the same guy who started and ran JBLU (until he screwed up and got himself fired by the board.) Neeleman was born in Brasil and holds citizenship there. He speaks the language and knows the culture. His business model is Southwest Airlines, one of the most successful airlines this country has ever seen. Don't rule out Azul; they're giving GOL a run for their money. Interestingly, GOL was also founded on the same business formula as both JBLU and Azul. It'll be interesting to see how this plays out. As for the World Cup, I don't think it's nearly as big a deal as you think. It may bring in some added traffic for a very short time, but it certainly won't last. Same for the Olympics. Overall, the Brasilian economy seems to be cooling down considerably. It got too hot too fast to be sustainable. Consumers took on too much debt which could hurt the banks (think ITUB.) Brasil is basically a natural resource provider to the more industrialized countries such as China and the U.S. If there's a worldwide recession - a very good possibility - they'll feel it first. At best, I think GOL is probably dead money.