This dog has hurt us big time over the years.
So much for state-directed capitalism and one reason, in our opinion, why the markets are shitting BRICs!
Back in 2008 Goldman Sachs listed Petrobras’ share price at $60, now-a-days it commands $20 a share, and we expect that price to fall further in the coming days. The Brazilian oil giant just is not what it was.
Investors are mostly scared by the simple fact that Petrobras does not exist to make a profit for them, but rather to serve the nation in whatever way the Brazilian government sees fit. Following a multi-billion dollar secondary share offering a few years ago and government intervention capping fuel prices and therefore profit, investors are worried that the government is trying to ever increase its control in the company.
- OilPrice.com
(click here if chart is not observable)
