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Wednesday, January 12, 2011

PBR is just interesting

Although I sold some of my PBR this morning, but still have a position, I am beginning to question my selling at the current level.

1. There was a nice article this morning about how its retail sales grew 17% throughout last year. That is awesome, and reflects PBR's direct exposure to the expanding middle class and strength of Brazil.

2. Its proven reserves in relation to its market capitalization indicates its valuation is too low.

3. The technicals are looking interesting with today's move. Ever since its massive secondary, the stock has been depressed, and channel trading for some time. Today may indicate a breakout from this trading dynamic.

IMO, bullish.

The weekly indicates mid 40s to low 50s is achievable.

I already sold my 'trading position' in PBR, but the position I currently hold I will not sell until the 44 area.

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