Petrobras Argentina S.A. ADS (NYSE:PZE)

CAPS Rating: 4 out of 5

A holding company that operates through its Subsidiary Petrobras Energia and its subsidiaries, which are engaged in oil and gas exploration and production, refining and distribution, petrochemicals and gas and energy.


Player Avatar petaperu (23.62) Submitted: 4/19/2009 8:02:45 AM : Outperform Start Price: $8.16 PZE Score: -181.52

This company looks very cheap to me.It is selling at approximately half of book value.It's P/E is listed at 4.5 on the CAPS page.
It is selling at 1.7 times cash flow.It has a decent dividend.
Is it more likely that the price of oil will go up or down... We will see.

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Member Avatar blink182fan (< 20) Submitted: 3/25/2010 6:16:23 PM
Recs: 0

Why invest in Petrobras when you can invest in BP. With Petrobras most of their eggs are in one basket, Brazil. With BP you can have a company with interests diversified around the whole world, most of their insecure regions are already priced in as well. Plus, BP has loads of cash as well, and is one of (if not the) most profitable deep water drillers and have a stake in the Canadian oil sands. And on top of it all, BP has a 5.8% dividend. You could get paid more to wait for a recovery in oil demand with a stronger company.

Member Avatar deltafox2 (< 20) Submitted: 5/29/2010 3:16:09 PM
Recs: 0

Well, BP has turned out to be a real bummer but who was to know?
According to
(April 19 2010) PZE's price target is $23 thus has a >50% potential which isn't bad for an income stock. The big gamble is of course the discovery of new easily accessible fields without the deep water cost/risk premium and in a country as large as Argentina this is at least a remote possibility. Of course the political risks of Argentina are much higher than elsewhere with the eternal instability issue. PZE is not and probably never will be a favoured analyst stock.

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