I had to write a brief note about the panic whipped up by UBS’ downgrade of Petrobras, cutting its price target from R$47 to R$22 on fears of a policy shift under the incoming Lula administration. This combined with quarterly ex-dividend day, to send the shares sharply lower and extend their slide since the election.
Great write-up. Agree with you on PBR; the market is pricing in complete devastation. Reduce the dividend by 70% and you still have a decent yield. Even with no reversion of valuation multiple, these co's will rise as incomes soar on higher oil price over the coming year.
I'm also much more comfortable at present holding oil majors outside of woke western markets. PBR is one of my biggest holdings, followed by CNOOC - massive interests around the world and they're aware of what's coming and looking to divest out of North Sea, and only a guess but GoM likely next.
You nailed this article, reading it now for the first time in July 23’
Great write-up. Agree with you on PBR; the market is pricing in complete devastation. Reduce the dividend by 70% and you still have a decent yield. Even with no reversion of valuation multiple, these co's will rise as incomes soar on higher oil price over the coming year.
I'm also much more comfortable at present holding oil majors outside of woke western markets. PBR is one of my biggest holdings, followed by CNOOC - massive interests around the world and they're aware of what's coming and looking to divest out of North Sea, and only a guess but GoM likely next.
Absolutely, fingers crossed. I'm sure Calvin will update Twitter as soon as there's some news!