I say it is prudent to avoid $50 buy point.
Today so far it is a good pop. But we have seen plenty of these lasting no more than 1 or trading days.
I will need to see PBR can sustain such gain for at least 1-2 weeks.
Until that happens, stilL DEAD CAT BOUNCE. -:)
Nope. The stock pretty much gave up most of its gain yesterday. It's confirmed, the trend down for PBR.
Also, with the Bazilian government planning a new company to benfit from the new discover, I don't see any major upside for PBR in the near-term. It may head to $30 to test its 1 year lows before any bounce back.
When you consider how far PBR has come down from the recent high at around 77, I'd say that this is a good place to start doing some buying. I'm not saying that it's headed back to 77 in the very near term, but 60 would seem to be an easy target from here. Over the next couple of years, 77 and beyond seems likely given the overall outlook for the company and the Brasilian economy as a whole. Likewise, I'd do some buying of euro/dollars at around 1.42 with a 2-year target of around 1.80 (make that 2.00 if McCain gets elected.)
Both of you better have a message board between the 2 of you. Others know what's going to happen. Just a slight hint: get a look at the mutual funds loading PBR, NE since beginning of July (get it? beginning of JULY !!). They bought more than 120 MILLION PBR shares while some hedgers sold. I will keep NE (sold at 61,35; re-entered at 51,25) and PBR (sold at 69,9; stepped in again (yes, again!!!)) at 55. If anybody wants to sell me NE at 45 or PBR at 47,5, let me know.
Of course, this offer is only valid until Friday. By the way, I never boast, I have the bank sheets to prove.
Just saying: PBR/NE will go up.