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

Oil should go high

Since the Brazilian Government takeover of this stock through majority ownership, PBR has been on a steady downward slope. The Government is bleeding the company dry. Management is paid huge incentives to accept Government intervention. If they complain, they are fired (such as the ouster at Vale). The Government forces the company to sell gas and diesel at a loss, as the price allowed by the Government is less than the company's cost for importing gas and diesel. Look for continued company diversion of funds for projects such as soccer stadiums. This may be an interesting speculation in the low single digits, but even then it is not without risk, For the near term, do not buy into the argument that the Government has learned its lesson, and that because of outward flows of foreign investment, the Government will change its method of operation. They have not, and they will not.

Petrobras stumbled pretty bad in 2012, but it's getting pummeled a little too hard by the market. As long as Brazil doesn't go into recession and Petrobras actually develops the oil fields it controls, the share price will pick up in the medium term. The stock also stands to gain from any short-term oil price jumps. It's a somewhat risky international resource play, but with a PE of 6 and a price-to-book of .7, the risk is cheap and the upside is huge.

Low price to book and relatively high operating margins positions this company for long-term growth. Government meddling may limit current upside but may also help long-term when political focus shifts from consumer protection to international competitiveness. Brazil is South America's long-term growth engine. Much of this growth will come from its natural resources.

PBR sitting on one of the largest deep water oil reserves stock has stabilized with prices of oil continue to rise

Horrible debt levels and a meddling socialist government will ensure minority investors buying PBR see low returns to come.

I see value at this price. I see it going to $30 in the next 5 years.

PBR Revenues in 2013

bearish engulfing

Once oil demand picks back up after the world fixes its collective economic debacle, PBR will gain. When will that happen? No idea although I think we're seeing some signs of it now. I'll go out on a limb and call for a double in 5 yrs. Collect the dividend while you wait.

too much regulation on prices and labour force. I prefer others petroleum companies with better business enviroments.

Low p/e and emerging market

Low PE

Oversold. Technical buy that met my criteria.

It might not be a monopoly anymore, but with brazil rising, PBR is a buy at this price.

this stock has been out of favor and offers now an attractive entry level. Those with courage and enough financial staying power will get rewarded. BUY!

ge

At Current time the stock is being hit by the decline of gas prices. They have some solid investments which will pay off in the long run by taking advantage of this 52 week low.

Petrobras is going to be rolling in the dough from its newfound oil wealth in Brazil. Get on now while you still can.