GOL stock forecast: Turbulence for this South American Airline

GOL stock forecast

On the 24th of July, 2015, the I Know First Algorithm provided a gloomy three month outlook for GOL Linhas Aéreas Inteligentes S.A. (NYSE:GOL), an air transport company. Unsurprisingly, three months later, on the 24th of October, GOL had fallen by 45.35%.

GOL stock forecast

The airline is based in Brazil, which had been experiencing an economic downturn, evidenced by GDP being calculated at -2.6% Y.o.Y. (year over year). Due to tight fiscal and monetary policies there, employment and inflation rose, leading to weaker demand from consumers. The 39% depreciation of the Brazilian Real relative to the dollar also hurt the company’s profits.

In face all of this bad news, the company proceeded adventurously. During this three month period, it ordered 15 cutting-edge Split Scimitar Winglets from Aviation Partners Boeing, a leading manufacturer of plane winglets (a part of the wings), to fit on it’s new batch of Boeing 737-800 aircraft. It raised funds from Delta Airlines and FIP Volluto (a Brazilian investment fund), in order to take advantage of low oil prices and stock up on inventory.

However, with Brazilian President Dilma Rousseff surrounded by corruption scandals and with the economy stagnating, investors were weary of the company’s stock.They couldn’t look past the negative investing environment and so the stock declined sharply.

GOL Linhas Aéreas Inteligentes S.A., through its subsidiaries, provides regular and non-regular air transportation services for passengers, cargoes, and mailbags in South America and the Caribbean.

 Algorithmic traders utilize these daily forecasts by the I Know First market prediction system as a tool to enhance portfolio performance, verify their own analysis and act on market opportunities faster. This forecast was sent to current I Know First algorithmic traders.