By Tim Seymour
Petrobras (PBR) up 13% -- talk about the pain. Shorts are getting squeezed tight on the 5% raise in diesel prices. Add that to the less-than-spectacular January raise and you now have tariff increases that make sense for Brazil.
In all, investors have to be wondering if this means the government now has no other choice but to improve the cash flow of this serial capital eater and political pawn. Four or five times bitten, one-time shy is the best way to describe the experience of many dedicated and casual investors of Petrobras and Brazil. Today may be more than a squeeze, maybe a signal of change. Stay tuned, but don't hold your breath.