Petroleo Brasileiro S.A. (ADR) (NYSE:PBR)

NJ7 (27.83) Submitted: 12/21/2011 10:38:23 PM : Start Price: $24.77 PBR Score: -27.68

Petrobras=offshore holdings. It's that simple. Petrobras investors like me are ultimately waiting for the company to fully tap those huge reserves. This will require huge amounts of capital and accident avoidance despite the dangers of deep-water drilling. Governmental limits on domestic oil prices are also an issue. But when these reserves are tapped, I could see Petrobras reaching $60+ dollars a share like other large multinational oil corporations, and increasing its dividend substantially. The question is, how long will it take and at what cost will it tap those reserves? Debt will be a reality, and a weak currency has increased those debt costs.