I bought PBR-A at 5.13 and am now in CLF at avg of 5.16...follow me along for greatness.
500M MARKET CAP
NO PROFIT LAST 4 YEARS
NO PROFIT EXPECTED NEXT 3 YEARS.
GOOD LUCK WITH THAT
Sentiment: Strong Sell
it's not being delisted. it's on watch for the next 6 months. Once they file their ER nothing will happen.
Also they received this letter 3/18
it will be down tomorrow but should reverse later in the day. likely touches 8 again
you're wrong man. i've been long since 6.25. There is tremendous value here if you just hang on. If you're uncertain just cut half your position
Also, PBR Preferreds were paying dividends in the past. Maybe not this year, but in the coming years they will like resume the divy
your comparison to Exxon is not apples to apples. Price/Sales = 0.3 or $16. Exxon = 1 or $86
The return back to P/S is about 200%.
That return is not the same for XOM.
I don't believe nationalization is a possibility and for this reason only.
The Brazilian Government owns 50% of the common shares (it's state owned and half nationalized already). Keep in mind this does not include the preferred shares. If this gets nationalized (anything is possible) it would throw Brazil into a massive tailspin and money would rapidly leave the country causing chaos.
Their government is looking for stability and to rebuild credibility with their foreign investors.
The next question is bankruptcy possible? Again, the government (and banks) have IMPLIED support for the company. They can modify credit lines and debt covenants whenever they need be.
I am in agreement that once the Real strengthens PBR will show strength. the real hit overnight capitulation on heavy volume at 3.31 and is now back to 3.21...if there is anything positive it is that the real is at a 10 year high (should mean-revert to 3s) and oil is also in uncharted waters.
Bull Thesis (in this order) -
- Real to 3
- Oil stability above 50
- Asset sales
- Dividend Cut
- Possible impeachment of Dilma?
its true. they service 2.2million loans and service loans in 4,000 private label MBS. if you read the article closely, it says they only considered removing Ocwen for ONLY 2 RMBS deals. That's actually a POSITIVE sign, to be real.