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NYSE:PBR

Petroleo Bras Sa Petro (PBR)

16.58
-0.17 (1.01%)
as of Jun 18, 2026, 10:35:44 pm Market Open.
25 watching
0
TOP PICK

SHORT. It is a mess. It is going to be negative free cash flow for another 4 years. Cash will go to servicing bond holders. There is also a corruption scandal and there are also the low oil prices. He thinks it will go down to a dollar.

DON'T BUY

Prefers Canadian oil companies because he thinks the Canadian oil complex is one of the best in the world. This company has a lot of deep oil. Doesn't know if, with the horizontal drilling and the shale plays, if that oil can come on shore or not, because their cost of production is very high.

SELL

There are big expectations baked into this story. $45 billion worth of CapX per annum for a long period of time to take off huge oil reserves from the ocean floor. Company has not executed well. Also, issues of political interference. Thinks this will be a “show me” story.

DON'T BUY

(Market call minute.) Great resources but a huge CapX build ahead of it.

COMMENT

Big Brazilian oil producer and has a lot of growth plans to develop some offshore drilling projects. Her preference in energy is to play the smaller and intermediate domestic producers that have very good land positions in Western Canada and that pay a dividend.

DON'T BUY

The prospects that they have for production growth offshore are tremendous. The problem is that the Brazilian government has used their stake in this as a lever. Any time a government has a major stake in a company in certain countries, it can have an impact on their ability to make a profit.

COMMENT
This stock depends on where the oil is going to be. This company will be a major beneficiary of the longer-term oil price trends because they have enormous discoveries off the coast of Brazil.
COMMENT
A little nervous because of the environmental investigation regarding Chevron. Also have a new CEO who seems to be changing the board around. Have some great assets in Brazil. One of the negatives is what happened with the Argentinean oil company and people are worried. But at these numbers, he is a lot more interested and wants to do more work on it. Valuations are attractive.
SELL
Is concerned about Brazilian inflation – the official and the unofficial rates. Government is interfering with the running of these companies. He sold another because he didn’t want to get involved in the interference by the government in the running of the company. It’s a show me story and you have a governance issue. Do you really want to be there.
DON'T BUY
The way he play US the energy market is that he thinks we have the best energy stock in the world here and you get the dividend tax credit so stay here. Prefers Vermillion, crescent point – the oilies. Buy them on dips.
PAST TOP PICK
(A Top Pick Feb 7/11. Down 14.26%.) The problem is the general malaise that is affecting all oil companies despite the fact that oil has held in fairly well. If you believe oil prices are going to be higher, this will be a beneficiary.
DON'T BUY
Generally what he doesn't like about Brazil is its inflation. The biggest problem is that there is starting to be Brazilian government influence for these companies.
PAST TOP PICK
(A Top Pick Feb 7/11. Down 19.71%.) Has been affected by the pull back in oil/gas prices, but also had difficulty in getting their big discovery out from offshore Brazil. Cost estimates have continued to skyrocket.
DON'T BUY
Fantastic company. Not one of his picks in the sector because so many of their production assets are offshore. Very deep water with high costs. Decent dividend. There are better choices in this sector. (See Top Picks.)
BUY
Chart is same as Suncor. Buy Canadian oil right now because you don’t get any benefit to going outside Canada. But it doesn’t hurt to own the stock.
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