Stock Focus: Petrobras (PBR) Update
Posted on May 6, 2008 in the Stocks category
.Back in January we wrote about Petrobras (PBR) which is Brazil’s largest oil company. The in oil prices has helped propel Petrobras upwards, and the stock has doubled since labor day. It is up about 25% since we recommended it!
What is intriguing to many investors is that Petrobras has two class of stock, the main PBR stock as well as a class A (PBR-A). The only difference between the two classes is that the A shares have no voting rights.
Up until late last year the two classes of stock traded at the same level, but in November, the A class shares started to trade at a discount. That discount is now around 18%.
If you are interested in buying Petrobras (and we think the stock still has significant upward potential), then the A shares would appear to be a better deal for investors.
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