The value of investing is ability to make money, not book value which may be wasted like HP. If you want cheap stock, I suggest you should buy appl, its pe is 10, actually below 10 if its huge cash not count. You buy top comany by almost same pe as pbr. By the way, I bought appl when it was 445.
pbr has oil, however it is very complicate project which it has to dig very deep to get oil, spend huge money to get oil with huge risk.
Pictures tell a good story.
So Petrobras spends 15 billion dollars in Pernambuco to build a 5 billion dollar refinery. What is the book value given the massive cost over runs?
Company gets los of debt to service a low return investment.
So if triple the cost is average for on shore stuff, what is the cost for offshore stuff?
Nail in the coffin. Graca Foster demands price increase yet gas costs 50% higher at the pump in Brazil than the USA while the Brazilian minimum wage of about 350 bucks a month is a third of the USA. Toss in the miniscule dividend and how PBR cannot raise prices without Dilma and Guido Mantega, shareholders are tossed on the fire as PBR is managed to control inflation without reguard to shareholders.