State-owned oil and gas heavyweight Petrobras (
) is a major index weight stock, and a major drag on investing
[caption id="attachment_76035" align="alignright" width="300"
caption="Fuel not rising fast enough"]
Earnings came in lower than expected as the company is spending
too much money importing -- that's right, IMPORTING -- diesel and
gasoline bought abroad at a 12% loss. Debt and balance sheet issues
continue to plague the company.
The credit rating is starting to look vulnerable, especially as
last week's very disappointing domestic gas price increase was too
small to help the company's free cash flow (FCF) squeeze.
Where are the positive catalysts in the coming quarters? How
many investors have said now is the time to bottom fish on PBR in
the last 18 months?
PBR may soon displace Russia/s Gazprom (
) as the most hated stock in Global Emerging Markets (GEM)