Quick Win by the Algorithm: GOL Soaring to New Heights

Quick Win by the Algorithm

On February 7, 2017, the I Know First algorithm had predicted a bullish forecast for Gol Linhas Aereas Inteligentes SA (GOL). It had a signal of 20.24 and a predictability of 0.39. In accordance with the algorithm, the company reported gain of 41.08% in just 14 days.

quick win

Gol Linhas Aereas Inteligentes S.A. provides low-fare, non-stop passenger flight services through its fleet of next generation Boeing airplanes. The company provides domestic flights in Brazil.

quick win

Gol Linhas Aereas Inteligentes S.A recently announced a Sale and Leaseback Agreement for Five Boeing 737 MAX 8 Aircraft.  The new aircraft will reduce future fuel consumption. Moreover, Gol looks to pass the savings on the new fleets onto their consumers. Consequently, the company has worked diligently to match their fleet growth with GDP growth, and they believe they have matched supply of seats with demand, as indicated by the high load factors.

An ADS is a U.S. dollar-denominated equity share of a foreign based company. An ADS can be purchased through the American stock exchange. The benefits of an ADS is that foreign companies gain the advantage of a wider investor base. The current ratio for GOL was 1 ADS to 10 preferred shares.  GOL’s newly announced ratio will be 1 ADS to 5 preferred shares.  Thus, this change in American Depositary Share (ADS) ratio could increase liquidity in trading and expand shareholder base.

Furthermore, Zacks Investment Research increased the stock price target to $24.00. Since this stock price target, 7 brokerages have issued a ratings update on the company.

This bullish forecast on GOL was sent to current I Know First subscribers on February 7, 2017. 

Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. While the algorithm can be used for intra-day trading the predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.

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