It has been a great run,from 22 to 73,institutions dont have to hide in KR,US economy is recovering,they are buying cyclicals,cheap European stocks
There is an article in WSJ yesterday about the rail business,with the slow down of fracking,less cars are needed to transport crude out of the Bakken and Eagle Ford shale,and less cars for bringing sand to those places for fracking.
The makers such as GBX,TRN have a back log good for 1-2 years.
They have more than 2 billions in debt,it has more debt than any company in the world.
But you know why institiutions are buying now the scandal is out of the picture?
The Brazilian govt owns PBR and will not let it folded.
It will keep going up,not 20 but 12-14
strong dollars !
all the multinational which sells oversesa are facing this problem of strong dollars.
what they earn in India,China,Bongo get translated into less US dollars.
But who does not want a coke to quench thee thirst?
These companies will show the effect of lower oil price-steel,pipeline,transportation,look at GMT
PBR management is probably dancing in the streets,since it subsides gas price to the consumes,higher oil price means higher cost to subsidise.
who will buy the bonds,plenty of money out there looking for high yield/
As for PBR stock price,look at the options premium,not much faith it will go higher .
PBR being owned by the goverment subsidises the poor by selling gasoline for less,with oil price at $100,they lost more moeny than oil price at $50.
how many days does it take to cover 126 millions shares of shorts outstanding?
last week Barron shows shorts have increased from 100 million to 126 million shares so someday these shorts have to be covered,may be starting tomorrow when the dust settles
no earnings yet,just comments that PBR balance sheet would show the writedowns,impairments since the contracts are all padded .