GOL Linhas Areas Inteligentes: Why This Airline Is Different

| About: GOL Linhas (GOL)
This article is now exclusive for PRO subscribers.

I had a little room in my Wall Street Survivor portfolio and determined I would still buy into this market, I went bargain hunting in these down days. I used Barchart to find which stocks were continuing to hit new highs even while the market was sliding backwards and came up with Linhas Aereas Inteligentes (NYSE:GOL) a Brazilian ADR that is a regional airline.

Before you start deriding me for considering any airline, give my thinking a try. Airlines in the rest of the world are a little different than airlines in the US. In countries like Brazil there is no alternate transportation choice. For much of the country there are no proper roads or rail options, so air travel is the only choice. This particular airline moves people, cargo and mail bags, so they are not as passenger dependent and ticket price sensitive as in the US. There is also less competition.

The stock has hit new highs in 14 of the last 20 trading sessions and is 5 for 5 more recently. There has been a 63.48% price appreciation in the last 65 days and BarChart's technical indicators have 12 of 13 buy signals for a 96% buy rating.

The 9 analysts following the stock look for a 26.2% increase in sales next year and a profit improvement of 136.8% this year. They have 4 buy, 4 hold and 1 sell recommendations. The lone sell was from Citi back in January and the stock has had good price appreciation since that date. The most current review is from Argus this August and they went from sell to buy.

On some other sites Wall Street Survivor Mark's checklist has a Survivor Sentiment rating of 5/5 and a fundamental rating of 4/5. Over at the Motley Fool the members think the stock will out perform the market by a vote of 313 to 37 with the All Stars in agreement 97 to 10. The mixed review comes from the Wall Street columnists that Fool follows with a vote of 5 to 4. The 4 who say 'sell' did so back earlier in the year and have not revisited their signal. The stock has had pretty good price appreciation since then, so I'll discount those sell recommendations.

The stock has what I'm looking for:

  • Hit new highs in the current market at least 50% of the time
  • If Wall Street brokerages are following the stock - no current trash talking
  • Other sites do not have a major disagreement with my stock pick

Recommendation: I'm going to add Linhas Aereas Inteligentes (GOL) to my Wall Street Survivor portfolio around 15.78 with a protective stop loss no lower than 12.

Disclosure: I hold no positions in this stock at the time of publication