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

Page 1 of 2

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.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!