Gol Linhas Aereas Inteligentes SA (ADR) (GOL), ONEOK, Inc. (OKE): Three Stocks Near 52-Week Lows Worth Buying

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Just as we examine companies each week that may be rising past their fair value, we can also find companies potentially trading at bargain prices. While many investors would rather have nothing to do with companies tipping the scales at 52-week lows, I think it makes a lot of sense to determine whether the market has overreacted to the downside, just as we often do when the market reacts to the upside.

Here’s a look at three fallen angels trading near their 52-week lows that could be worth buying.

No guts, no glory
Some of my turnaround candidates in this weekly series rank pretty low on the speculative scale, while others are off the charts. The next pick certainly falls into the latter column and certainly isn’t for the faint of heart.

Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL)

The airline sector is typically a poor long-term investment. It requires huge capital investments to return what’s often a nominal profit margin that can be easily disrupted by economic weakness and/or higher fuel prices. Despite these concerns and a hefty 2012 loss, I consider Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL) the perfect turnaround candidate.

Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL), an airline company operating out of Brazil that services much of South America, has been focusing its efforts primarily on cost controls meant to bring demand in line with supply. According to UBS AG (ADR) (NYSE:UBS), Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL) has plans to expand its fleet by just three aircrafts between now and 2016. While that may sound like an opportunity for growth to stagnate, it’s actually the perfect opportunity for Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL) to focus on improving its administrative efficiencies and load factor. We saw evidence of this happening with a 30% decrease in employee costs last quarter compared to the previous year.

In addition, despite a loss in its most recent quarter, Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL) did manage to deliver a 12.4% increase in net revenue per available seat mile in the first quarter. It will certainly take until 2014 before GOL is able to turn in an annual profit, but the groundwork has been laid to turn this airline around, and the region is certainly ripe for steady economic growth. For those with the stomach for volatility, I’d suggest digging deeper into Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL).

A way to play the natural gas revolution
It certainly wasn’t a banner first quarter for diversified energy company ONEOK, Inc. (NYSE:OKE). Profit for the quarter fell markedly short of Wall Street’s estimates as its Oneok Partners LP (NYSE:OKS) segment experienced tighter liquefied natural gas price differentials, and ethane rejection. It also didn’t help that commodity prices were down across the board. However, now could be the time to jump on board this steady income payer.

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