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Petrobras (PBR) is likely to remain under pressure as long as Brazil's real stays weak, WSJ's...

Petrobras (PBR) is likely to remain under pressure as long as Brazil's real stays weak, WSJ's Spencer Jakab writes, adding that stubborn inflation and recent protests mean the government probably won’t help with further fuel increases any time soon. But Emerging Money’s Tim Seymour thinks the selling is overdone, and PBR is starting to look "interesting" as oil prices hold, demand returns and output improves.
Comments (3)
  • One would think that if oil is valued in dollars. the Brazil's real would not have and effect on Petrobras
    9 Jul 2013, 01:13 AM Reply Like
  • gawiegand: The objective of the article is to get "weak-handed" shareholders to sell their shares. Undoubtedly some part of PBR's oil is contracted for in US Dollars and (I know this is hard to believe) the real will "fluctuate" (imagine that). But, you and I are confuse by looking at facts. The only facts we need to worry about is (1) the company has the energy reserves it claims to have and (2) the government will treat us (the company and non-government shareholders) fairly - the rest should take care of itself.

     

    Obama might make fossil fuel "obsolete," but that is another discussion.
    10 Jul 2013, 12:40 AM Reply Like
  • Sorry gawiegand: "Major problem." Brazilian government "sets" the price of gasoline within the country - hope Obama is not watching. Worse yet, PBR's CEO herself blamed the weak currency for the stock's poor performance earlier this year. I guess we need to pause. But eventually, the real will strengthen, the company should be able to export and the "insiders" will make money - patience is the key.
    10 Jul 2013, 12:58 AM Reply Like
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