GOL: An Airline Stock Set to Take Off

The past few days have featured rising markets as economic reports turned out to be less negative than expected and a few major companies have beat earnings expectations. One particular sector showing strength is airline stocks - but not likely the ones you are thinking of. While large behemoths like Delta Air Lines (DAL) and AMR Corp (AMR) - the parent of American Airlines - have remained rangebound, some niche airlines such as Allegiant Travel Company (ALGT) and a few non-US airline stocks listed on US exchanges have seen strength.

It’s been quite some time since my fund invested in Gol Intelligent Airlines (GOL), but the company’s investment prospects appear to be improving by the day. Most recently, the stock broke above resistance around $6 and has rallied more than 20% this week alone. Investors are quickly realizing that earnings could pick up significantly - with the potential to reach 2006 levels when the stock crossed above $40 to mark its all-time-high.