For PBR to sell off following earnings tonight there would have to be a ticking time bomb within the earnings announcement. If PBR makes 2 billion dollars in profit they have got to rally. $19.50 is a joke.. Stock should be $28 or higher.
Lst time the Real broke down Sadia, the big food processor nearly went belly up with losses in the Treasury department. So who among the PBR directors couldn't make the video teleconference last Thursday? The head of the FX department? The way this is trading indicates somebody knows something and it certainly is not good. If the trader at JP Morgan desk, the whale, was able to drop billions, how much could the traders at Petrobras drop? Perhaps it is nothing but this rapid fall indicates something is not right.
the problem is Dilma prohibiting pbr to increase gasoline prices. . pbr has to import alot of gasoline at world market prices and sell them in Brazil at prices of 4 - 5 years ago so at a very big loss.
This situation will continue until prb will be allowed to increase prices or until late 2013 when a new refinary will come on stream.
Also crude production will start to increase significantly later this year and this certainly will help results for the better
keep on the good work Dilma and flagship pbr surely will sink.
This is what looks like the concern is.. profit margin went from 20% of revenues at the beginning of 2011 to 7% in Q4. That's falling off a cliff. People are worried.. and rightly so that this trend continues. If so, I could see 15. If they have addressed it or have a credible plan, 25 in the not too distant future.