PBR would be doubled by next summer. It is the most undervalued large oil company besides STO. It has a huge reserve which means it can increase both production and the revenue. It also pays dividend which I don't mind losing it if they pay debt thus increasing PPS. My target price for PBR is around $30 by next summer. I am confident with 95% probability!
I hope, you are right. The past 3-years' trend and company activities show several things: company sold shares at $32-34 several years ago, and never followed up on earnings growth. The government of Brazil seems be controlling and investor un-friendly like in any emerging economy. The US institutions do not seem to be owning much of this stock. Not clear, whether the so-called oil reserves are correct because many companies do cook their books. Not clear whether they will produce real oil out of it since they keep saying for last 3 years. Shorts like Jim Chanos short this stock apparently base on this thesis. Perhaps, some big money keeps control of this stock and will take it at its own choice or company's choice. Certainly, the company and Brazilian govt do not seem to be mindful of investors. Plus, the company does not be managing its capital like Exxon or Chevron does.
I like PBR as a valuable company with strong assets and ongoing goals. PBR is really very lower lever compared to other oil giants. Wait until its new projects get installed. it will boost production and raise revenue big time. i would like to see PBR $30+ level before end of 2014.
Short term i am also looking to buy call for PBR for Dec-2013. waiting to see what the earnings will bring on Oct.21.