Wednesday, March 24, 2010

PBR, Petrobras, To Invest $220B

PBR, the Brazilian oil giant and world's 2nd most profitable company, confirmed today that it will invest $220B for the period 2010-2014.

In order to invest this kind of money, the company will need to raise funds. The amount raised will vary depending o the value of a barrel of oil. As mentioned here last week, this will occur in the first half of 2010.

According to José Sergio Gabrielli, PBR's, President:

  • If the price of oil is $64, the company will raise $15B
  • If the price of oil is $80, the company will raise $25B.
The funds raised will constitute a minority ownership.

Interestingly, the current relative strength values are 42.70, 51.44, 50.65, right into neutral territory.

We track PBR live in our Live Tracking site of latin-american ADRS.

Investment protection in the face of a global melt-down

The company (and Brazil) is sitting on huge oil deposits. Barring a 2nd depression or some similar event which could severely restrict the demand for oil for many years, this may be the place to be given the funny money being printed in Europe and the US to pay bad debts.

These are the optimum buy alerts produced by our own Risk Analysis tool (green signals):

Disclaimer: The author does not own PBR.

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