Today is bottom fishing day in Brazil’s state-owned energy giant Petrobras (PBR, quote).
Time to tip a toe in despite company fundamentals that are deteriorating and no sign the government cares (see Russia’s Gazprom (OGZPY, quote) for a similar tale)?
Petrobras is a $108 billion company on the outs with investors, but the Brazilian government realizes they are part of the problem — and the solution.
Thirteen 9 day RSI currently, but now down 48% since March 2012 and testing the lows of 2008.
There was a massive volume washout last Tuesday amid poor earnings and questions on dividend payments on the common shares (“ON” shares).
Merrill Lynch says “sentiment is as negative as we can remember”. You name the metric and they are negative: production, refined product prices, earnings, cash-flow, debt levels, etc. – so we think investors are likely to remain cautious.