$10 Billion in U$D denominated debt? Bye Bye PBR....
I own PBR a bit higher and am in the process of building long term position but I may eventually decide to pull the plug on this trade as well. If the DXY breaks above trendline, which it likely will, this is going straight to $10 and possibly lower. I don't think this trades above $13 again for a long time. PBR needs to be put out of its misery.
Here comes the $12 roll.....wow - this company is dead stick. This won't hold $11 for long once it rolls over. If you can't hold this for at least 18 months, don't bother buying. You'll see little pops but they probably won't be enough to get you even so you'll just continue catching the knife.
My heart is with you , longs. You didn't know what you were really buying. This is not just an E&P company. And even as such - it has to mobilize tens of billions of dollars in order to drill and start producing significant quantities from the deep sea.
However, the Brazilian gov't has its own ax to grind. Subsidies to domestic mkt, imposed price restrictions on gasoline, etc.etc.
Everyone who had eyes in his head should have seen this coming after their huge secondary offering a few years ago.