Petrobras: Cheaper Valued Than During Their Biggest Scandal

Manuel Paul Dipold
2.36K Followers

Summary

  • The valuation is now lower than ever. Is it justified that the valuation is lower than in the middle of the scandal?
  • Lula's most significant change will probably be to make Petrobras invest more in renewable energies.
  • If the valuation were close to or above the historical average, I would probably sell, given the uncertainties.
  • But at the current valuation, the margin of safety is so large that selling at this point would be a mistake, in my view.

petrobras gas station

Joa_Souza

Investment thesis

In my last bullish article from the end of September, a little before the election, I argued that the fears are exaggerated and that there are currently political risks in the oil sector worldwide. From the actual visible facts, one has

This article was written by

2.36K Followers
My focus is on a total return style with long and short positions (10-30% short positions). My main expertise is the current technological and geopolitical shift with the amazing investment opportunities they offer. Therefore, I always try to find stocks or whole sectors with favorable risk-reward structures. My long investment style is a core-satellite strategy: The core consists of large caps and/or ETFs. The satellites around this core are small caps, potential 10-baggers, and undervalued stocks. In short selling, I focus on overvalued stocks that will fall back down sooner or later. My name is Manuel Paul Dipold. Born in Germany but lived 8 years in Asia. I am myself an entrepreneur and have many entrepreneur friends. I am not a professional investor but it´s a hobby I love. So I know Europe and Asia very well and seek undervalued or high-growth stocks - always with valuation, geopolitical and social shifts in mind.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PBR.A either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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