Petroleo Brasileiro S.A. A Shares (NYSE:PBR-A)

Allstar13913 (99.84) Submitted: 7/26/2011 9:31:43 PM : Start Price: $30.94 PBR-A Score: -12.62

Petro Brazil is the best gas stock in Latin America!

TheGarcipian (98.41) Submitted: 5/26/2011 8:30:55 PM : Start Price: $30.72 PBR-A Score: -11.39

I expect strong demand for oil to continue worldwide from this Brazilian producer of oil & natural gas. Investing outside the USA right now is a very wise move to benefit from the falling US Dollar. Investing in oil & gas exploration internationally is also an excellent way to hedge against inflation in the USA.

I like the financial numbers I see for PBR-A on Yahoo!Finance. Forward P/E is 8.11, while Trailing P/E is 7.06. The PEG ratio is a little high for my tastes (at 2.16), but perhaps nibbling at these prices may not be a bad idea. The profit & operating margins are 17.7% and 21.6%, respectively, while the RoA=6.4% and RoE=16%. Quarterly growth rates for revenue & earnings are 8.7% & 42.2%, respectively. All very nice numbers.

The danger in this stock is the unpredictable pricing for oil due to the complexities of its supply & demand. There is also a huge debt load on PBR-A (as with most oil conglomerates) of $79B, which is almost half of its market capitalization, pushing its Debt/Equity ratio to above 40. Whew, that's a lot of debt!

However, I believe Latin America, and in particular Brazil & Mexico, will experience better growth than the USA over the next 6-9 months, so I am intrigued by PBR-A's current pricing. Being a momentum player, I am attracted to what appears to be a local minimum in PBR-A's chart. Indeed, the stock has taken a beating over the past 60 days, but I think/hope this is merely a short-term event. Let me make it clear: this *COULD* be a decent investment over the next year, but I am playing this pick mainly based upon a reversion-to-the-mean philosophy for the next 3-9 weeks. After that time, I'll re-evaluate this pick for longer term prospects.

jackswims2003 (< 20) Submitted: 8/11/2010 11:59:51 AM : Start Price: $31.36 PBR-A Score: -35.14

Low P/Es on these stocks is screaming in muh ear to get some RL shares.

velo15 (< 20) Submitted: 4/1/2010 6:12:09 PM : Start Price: $40.78 PBR-A Score: -46.31

with China connection and oil reserves to be tapped by '11, this is the best growth Oil Co right now

tinmanwl (< 20) Submitted: 3/11/2009 8:49:05 PM : Start Price: $23.22 PBR-A Score: -70.08

Brazil + Oil = Profit. And PBRA gets the same dividend as PBR shares at a 20% discount!!!

ryanman000 (97.40) Submitted: 10/29/2008 2:40:41 AM : Start Price: $18.63 PBR-A Score: -0.37

tracking

forbes10 (99.89) Submitted: 7/27/2008 11:52:43 PM : Start Price: $44.21 PBR-A Score: -48.38

GIFT!

Skullstacker6 (< 20) Submitted: 7/20/2008 1:34:03 PM : Start Price: $48.00 PBR-A Score: -52.46

This ompany has a lot of upside in the high flying Brazilian marketplace. It has several new energy resources that bode well for the future.

monikasfantasy (< 20) Submitted: 6/24/2008 3:34:16 PM : Start Price: $54.26 PBR-A Score: -55.14

oil need i say more

Noodledoc (< 20) Submitted: 5/27/2008 11:17:11 PM : Start Price: $59.74 PBR-A Score: -54.29

Any country outside of the US aggressively drilling for oil will have buyers. International markets are friendly toward these interests. The 52-week range shows remarkable increases since April. With the summer months upon us, the sky is the limit.

thebullishedge (95.67) Submitted: 5/9/2008 9:49:43 AM : Start Price: $52.84 PBR-A Score: -48.38

CAPS needs to fix this stock split so I can reclaim the twenty some points I just lost!