Petrobras (PBR -1%) shares continue to slump after yesterday's earnings-induced rout, but...


Petrobras (PBR -1%) shares continue to slump after yesterday's earnings-induced rout, but Raymond James says the downdraft isn't over. PBR trades at a mere 8.1x 2014 earnings, but the firm warns not to be seduced by the apparent bargain price, citing slim visibility on a domestic production rebound, the highest financial leverage among peers, and another year of dramatically negative free cash flow.

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Comments (3)
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
     
    8x is not atypical for oil majors, and PBR carries a risk of further discount due to heavy gov't influence (no, I didn't use the stronger term, looting).
    6 Feb 2013, 02:31 PM Reply Like
  • chopchop0
    , contributor
    Comments (5171) | Send Message
     
    I had a position in this, but I dumped it recently after seeing what you've been alluding to. Companies based in countries like Argentina and Brazil just won't be investable until those governments letting the free market work.
    6 Feb 2013, 02:37 PM Reply Like
  • chopchop0
    , contributor
    Comments (5171) | Send Message
     
    And here we are again.... As many stocks move higher with the dow over 14K, PBR continues to carve out new lows.
    8 Feb 2013, 11:21 AM Reply Like
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