Petrobras gain is biggest 2-day rally since December 2008

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Continuing our call from yesterday, Petroleo Brasileiro Petrobras ( PBR , quote ) is seeing tremendous short covering follow through.

Image courtesy Petrobras News Agency

A stock that remains guilty until proven innocent has at least many wondering whether the government has reached a point of pragmatic sanity in terms of how they address the cash flow needs.

Hard to accept that this is anything more than a "trade" despite deep value on a standard multiple play.

Value traps in state oil and gas companies should be also accepted to be the norm until proven otherwise (see Gazprom , SNP ).  In fact, after a move that is outsized even for PBR, may be time to take some profits off the table.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , International , Stocks

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