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JimVanMeerten (62.35)

Petrobras on sale at a discount

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October 11, 2011 – Comments (0) | RELATED TICKERS: PBR

COMPLETE ARTICLE AND MORE GRAPHS


If you are looking for a stock that is raising cash for a major expansion then look no farther than Petrobras (PBR).  Recently they raised $70 billion through stock offerings, issued $6 billion in bonds, identified $13.6 billion of assets for divestiture and are on target to receive another $35 billion through a positive cash flow.  They will be acquiring and developing assets in the ground at an unprecedented level and should start generating terrific returns for stockholders.  The graph provided by Barchart of the daily trading trends over the past year shows an opportunity to buy on a dip:



Barchart technical indicators:

1 - Barchart's indicators are based on current price movements from 7 days to 6 months and sell signals can be a buying opportunity to buy on a dip

2 - 56% Barchart technical sell signal -- the sell signals are weakening and the buy signals are getting stronger

3 - Trend Spotter sell signal is also weakening

4 - Trades below its 20, 50 and 100 day moving averages

5 - Currently trading 44.45% off its 1 year high

6 - Relative strength Index us 41.63% and rising

7 - Barchart computes a technical support level at 22.92

8 - Recently traded at 23.73 with a 50 day moving average of 26.68


Summary:  If you would like to acquire an oil and gas stock that is on a major acquisition spree and is raising the cash to do it that then Petrobras (PBR) is the stock to buy.  If you believe in their business plan all you need to do is look at the fact that the are trading 44% off their 1 year high to identify a buying opportunity on a dip


Jim Van Meerten is a Marketocracy Master

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