| Lou Victor on Petroleo Brasileiro |
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| Friday, 09 November 2007 | |
Lou Victor on Petroleo Brasileiro(NAMC) – Over the past several months we’ve seen crude oil climb from the mid to high $60 per barrel range to almost the $100 mark. So naturally public companies involved in the petroleum arena are the direct beneficiaries of the trend. Petroleo Brasileiro S.A. (NYSE: PBR) has been one of those companies. With crude oil on the rise and the speculation of crude oil hitting $100 or much better in the coming months has led to companies such as Petro Brazil to hit the chord of investors. The stock rose $24.03 to finally close at $116.77 in Thursday’s trading session. Sure the company is buying some assets from Exxon South America, sure they are riding the upward oil trend but the stock trading above $100 a share is not going to last in my opinion. Petro Brazil in the $85-$90 range is a little more realistic. Investors are just riding the trend but if something changes in the global markets as it relates to crude oil, even though we are heading into the winter months, companies such as Petro Brazil will feel some pain, Exxon Mobil (NYSE: XOM), Valero Energy (NYSE: VLO) and even Chevron Corp (NYSE: CHV) may be better bets than pouring more money into Petro Brazil in my opinion. (as featured on NAMC’s Wall Street to Main Street)
Louis Victor
NAMC Newswire Note: NAMC Worldwide provides Investment Banking consulting services to both publicly traded and privately held companies, everything from capital raising to mergers and acquisitions. Other areas of focus are Private Equity Capital Raising and Private Commodity Transactions.
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