Okay So Petrobras is Down and Out below $30

But I did say I'll wait till November / December which pretty much saved me some serious heartache. I think it will be fun to see where it is headed. I am tempted to buy it now but I want to stick to my original plans and buy it in November / December.

The valuation is crazy and its probably pricing in the Brazilian government taking serious steps to get to all that oil. Also, Oil prices of course! But I think that oil prices will get back to about $100 pretty fast. This is because demand for oil today is extremely diverse and developing nations are increasingly more important, particularly in their numerical strength. Stock market bubbles will not effect them too adversely and Asian economies as well as Latin American economies are bound to grow. I think though that Asian economies are likely to have a far harder time given their export orientation. I think its important for them to find their own market and trade between themselves more as their consumer base matures. If they can do this, they will be fine, if they can't then they'll go to the dogs. I am not taking that risk until I see improvement in those numbers.

I think I might look more closely into GE as a ballast for PBR in my portfolio.