Posts Tagged Petrobras

Political concerns that Dilma will turn PBR into her social spending ATM are unfounded but that is exactly why this wonderful company is so cheap. The preferred shares have been floating around 30 bucks…a bargain!

We´ve seen downward pressure on Petrobras shares lately. Why? Isnt this the super star oil company that just discovered 100 billion barrels of oil off the coast of Rio de Janeiro? Yes. But they have to raise big money to exploit the sub salt fields. Some wonder whether the government really will be the investor of last resort, others worry that bond markets are saturated for Brazil debt, others worry that the planned 25 billion share offering will flop, others worry that JP Morgan just downgraded Petrobras from Outperform, to Neutral because they are so worried about others worries. Ignore all this. If these worries put pressure on our shares, we keep buying. Petrobras will get that oil out of those fields one way or another, you can be sure of that.

Raise This Oil From Those Sub Salt Fields Of Rio!

www.crinvestmentadvisors.com

Petroleo Brasileiro, Brazil’s state-run oil producer, aims to boost its spending plan by as much as 26 percent as it focuses on developing the Americas’ largest discovery in three decades and other offshore deposits. The company will announce a strategic plan in “coming months” that includes investments of about $200 billion to $220 billion in the five years through 2014, Chief Financial Officer Almir Barbassa said March 19. That compares with a previous 2009-2013 plan of $174.4 billion.  Petrobras, which in 2010 aims to invest more than any other oil company, including Royal Dutch Shell Plc and Exxon Mobil Corp., seeks to sell shares this year as part of a plan to swap stock for oil off Brazil’s coast. Brazil’s Congress is debating new oil rules and legislation to transfer 5 billion barrels of crude in an area known as the pre-salt region to Petrobras. (bloomberg)

www.crinvestmentadvisors.com

Private Banking

Petrobras is experiencing some downward volatility the last few weeks and soon many of our clients will be able to lower there average price per share by picking up more Petrobras. CR Capital stands firm. Petrobras is an excellent long term investment and we should take advantage of every opportunity to build on our positions. The NYSE ADR is sitting at 42, if that is at our around your average price per share, let´s not be shy. Buy.

I also thought I would share one of the major oil analysts thoughts from an internal bank memo…”We believe the weakness in Petrobras’s stock recently is primarily related to (1) uncertainty about the valuation of 5bn barrels expected to be purchased from the Brazilian government in 2010 and (2) concerns about the size and timing of any potential share sale to finance the reserve purchase. In our view, these key issues are likely to persist well into Q3-10 and potentially beyond, particularly for the reserve purchase, which will require a valuation adjustment within 24 months of the first valuation, suggesting 2+ years of some uncertainty. There are always reasons to be concerned with Petrobras. And, we believe the concerns on these issues are very real. However, we also think the market is over-reacting. For the reserve purchase, the level of scrutiny and transparency expected is likely to lead it to be done within a reasonable range. For the share sale, the overhang should remain until it is completed. However, it increasingly appears to us that the company is likely to scale the transaction to a level that will be able to be absorbed by the market. Still enormous, but less scary. With the decline, the shares are now selling at 6.6x and 6.1x on 2010 estimated cash-flow for the voting and non-voting shares, respectively. This is at a 6% discount vs. global peers for the voting shares and a 13% discount for the non-voting shares, despite a stronger strong growth profile and a virtually unparalleled asset potential compared to most other global oils.”

CR Capital agrees. Buy and build positions of Petrobras.

Administrations Will Come and Go But This Brand Is Here To Stay

www.crinvestmentadvisors.com

Brazlian Equities Experts

El presidente de Brasil, Luiz Inacio Lula da Silva, anunció en una festiva ceremonia realizada en Brasilia cuatro proyectos con las normas que serán adoptadas para explotar las gigantescas reservas de petróleo en aguas ultraprofundas de la llamada “capa presal” del litoral brasileño.

http://www.ambito.com/noticia.asp?id=479659

www.crinvestmentadvisors.com

Wealth Management

Brazil’s state-run oil company Petrobras (PETR4.SA) (PBR.N) said on Tuesday domestic oil production rose in July.

The company’s oil production in Brazil rose to 1.938 million barrels a day in July compared to 1.927 million barrels per day in June. Production was up 3.8 percent.
investment advisors
www.crinvestmentadvisors.com