Petrobras shares have been rallying despite bad press

Petrobras (PBR +1.1%) opens higher, continuing the surprising rally that lifted shares ~15% even as the company is enmeshed in mismanagement scandals and a case of suspected bribery.

The increasing perception of too much government meddling in the company was a major factor behind an earlier drop in the stock; now, revelations about Brazil Pres. Rousseff personally approving some deals in the past when she was Petrobras chairwoman and a potential congressional investigation has investors considering the prospect of a change in the government.

“Investors are buying Petrobras because they see the government being cornered,” says an analyst with brokerage SLW in Sao Paulo.

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Comments (5)
  • Uncle Pie
    , contributor
    Comments (4321) | Send Message
    Petrobras management had a sit-down with sell side analysts yesterday, and all of the firms are out with comments this morning, which might be characterized as "cautiously optimistic". As usual.


    Long PBR (fingers crossed)
    25 Mar 2014, 10:41 AM Reply Like
  • delprice
    , contributor
    Comments (1985) | Send Message
    Just wondering what the angle is here...PBR biggest debtor in L.A. -- a means to take deficits off the books of current Brazilian government?
    25 Mar 2014, 11:32 AM Reply Like
  • Rollo Tomasi
    , contributor
    Comments (275) | Send Message
    Long in the lower $11s. Was expecting it to break the $10 resistance level but going up is fine.
    25 Mar 2014, 09:24 PM Reply Like
  • luizinga
    , contributor
    Comments (5) | Send Message
    Long @ 10.92. I think it will rally all the way up to 18. The goverment is corner!
    26 Mar 2014, 11:08 AM Reply Like
  • delprice
    , contributor
    Comments (1985) | Send Message
    I was thinking 15 max short term gain by June
    26 Mar 2014, 11:19 AM Reply Like
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