One Guy's Investments: Annual Checkup -- GOL

I have to stop my brief exercise at going through these in alphabetical order, because Gol Linhas Aereas Inteligentes (GOL -- click to register for free RT streaming quote) is on an absolute tear today. Again. GOL is the most profitable public airline in the world, to my knowledge, and it is revolutionizing South American travel with it's low cost model -- borrowed liberally from the giants like Southwest, JetBlue, Ryanair, etc. I bought my first position at a split adjusted $24, and my only regret is that it has climbed so quickly -- I was hoping to get a little dip for my next buy, and am still waiting. Trading at a PE in the mid-20s, GOL is fairly expensive for a Brazilian stock -- but it's growing at well over 50% a year and still building out with massive plane orders in place, and they're just starting to tap into debt financing. Big news lately is that GOL is partnering to bring it's model to Mexico -- thankfully at a relatively small risk, since that low cost market will be much more competitive with established providers already flying -- and that GOL is continuing to expand it's footprint step by step across the South American continent. They added routes to Bolivia several months ago ... then Paraguay, Uruguay, and Argentina were announced in just the last month. Longer writeups on why I love GOL and their management and why I bought and want to buy more are here, here, and here. I'm holding and looking for another entry point soon.

Labels: GOL