Winning Stock Forecast: GOL Airlines Returns 40.03% in 14 days
Gol Linhas Aéreas (GOL)
GOL Linhas Aéreas Inteligentes S.A. (GOL) provides scheduled air transportation services for passengers cargoes, and mailbags in Brazil and Latin America. The company operates through Flight Transportation and Smiles Loyalty Program segments. It also offers logistics services. In addition, the company offers Smiles loyalty programs with approximately 13.7 million members, allowing clients to accumulate and redeem miles. As of December 31, 2017, it operated a single fleet of 119 Boeing 737 aircraft and approximately 700 daily flights to 64 destinations in Brazil, South America, and the Caribbean. GOL Linhas Aéreas Inteligentes S.A. was founded in 2001 and is based in Sao Paulo, Brazil
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Over past two weeks going long on GOL saw the returns of 40.03% this extraordinary rise is illustrative of investors belief in the companies pioneering market strategy in providing low cost budget air travel. Established in 2000, GOL serves more than 30 million passengers annually with 67 destination and 10 countries in South America and Caribbean. A recent corporate reshuffle has been at the forefront of the companies headlines symbolising a move for prolonged profitability and competitiveness.
Seeing as in general the Airline business is considered loss leading it makes it a particular difficult market to stay afloat in. Its first competitor is Irish Ryanair, which follows the same model. In South America GOL is considered a pioneer in low cost rates. It implemented a loyalty program that customers appreciate (14 million subscriptions). The employees themselves are trained to think in terms of business goals and the pay structure includes various incentives. In just a few years, revenues have reached $1 billion. This explosive growth has come despite the global recession, rising fuel prices, high inflation and one of the worst recessions in the airline industry.
This chart below shows the algorithmic forecast made on these top ten long and short options and the results of the forecast. As seen GOL was included in the top ten long options:
Current I Know First subscribers received this bullish forecast for GOL on October 12th.
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Algorithmic traders utilise 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.
How to interpret this diagram
Please note-for trading decisions use the most recent forecast.
This article about Long Short Strategy was written by Gabriel Plat, a Financial Analyst at I Know First.
