PBR will go UP
$150.00 on 12/27/08
$46.23 (-32.96% from time of market call)
$69.23 (0.39%) on 6/27/08
When I look at an oil company I look for these 3 traits:
1.We all know that eventually, oil will go above 200 dollars a barrel. If the company is the main one in the country that it works in, it'll benefit more from rising oil prices.
2. Make sure that the company still has room to grow. I don't mean 10% like a lot of oil companies. I mean huge returns. A company that's not too big so It'll multiply from an oil find, but still be a good sized company.
3. If it's a company that distributes oil directly to its customers-like Exxon-make sure that it's nice to them. If you're not nice to your customers, they won't be nice to you. Plainly-they'll leave you. That's part of why Bank of America went down so much: They treated their customers like trash and their business went down.
Now I'll tell you why I picked PBR:
It went up by over 100% last year. It's the 5th largest company in the world.
So why would I pick this company for my number one oil pick?
Because their's so much more.
Sometime in March, they found a huge amount of oil. Experts estimate that it's more than 30 billion barrels.
Last year, they made 13.14 billion. They found 30 billion barrels.
Assuming that they could sell each barrel for an average of 100 dollars, they'd make 3 trillion dollars!
That's way more than that measly 13.14 billion. And how much have they made since March? 35%. Go figure.
That amount has pretty much nothing to do with their oil find.
Expect this stock to multiply in the next couple of months.
"We all know that eventually, oil will go above 200 dollars a
barrel."
I do not agree, unless you are talking relatively. Sure, sometime
in the future you may be right if we don't find an alternative to
oil. But I don't think it'll reach $200 pb within the next ten
years. Its price is already ridiculously overinflated based on the
erroneous assumption that we've hit peak production. . . and
because of the conflicts in the Middle East . . .and because of
"speculators" . . .and because of China and India . . . and every
other reason the media irresponsibly pushes on the masses.