PZE will follow the bearish trend of PTRBPTRB touched again the resistance, it enter now in a bearish trend. PZE will most likely follow.
PBRD trade ideas
PBRfrom a long term perspective, im staying away from this stock. declining 30 week ema, i need to see consolidation for probably at least a few months to a year like what we see in the blue boxes. it's probably closer to the bottom than the top but that doesn't mean it will go up and stay up.
dips are still making V bottoms and not W bottoms yet. also even if we break the declining orange trendline, we may just revert to a less steep decline.
i want to see higher highs and lower lows. There is just too much nearby overhead resistance to consider a long without a lot of positive confirmation. i think stock might turn out to be a good buy if we wait a while for it to develop a nice stage 1 base. maybe another 6 months to 2 years.
PBR - Hunting for value investment ideasOn the heels of some fantastic pics for 2013 (GLW,PWRD, DRYS to name a few) the WDB options model is suggesting we take a close look at some names that are either not in the market spotlight at the moment or outright disliked. PBR is on that list and after further investigation the much maligned company appears to be an interesting idea. The model's basic premise is to find Put options, where if written and exercised the premium collected would be greater then the cost of owning a stock on margin. In essence getting paid by the market to hold the position. While fundamentally this company, in my opinion, is a very good 'value' the technical story is still a bit early. She is definitely oversold (Willy) but there doesn't seem to be a bottom in either price or volume. This suggests to me that if one did do the option write here, getting exercised is a very real possibility and you may need to hold the position for some time. Considering the nice dividend, for every quarter we do own the position our premium collected goes up by 6 cents this isn't too bad a place to have some money working heading into the 2014 World Cup.
PBR is undervaluedI wish I could go into more detail, but cannot for the sake of conciseness.
PBR is extremely undervalued. Revenues and FCF have grown significantly since the beginning of operations for the company, yet it is trading as if it's moving into bankruptcy. If they begin to pay down corporate debt, shareholder value will be unlocked.
Market concerns: Brazil has 5-6% inflation and gov't seems to weigh down PBR's potential.
Technicals: Volatility suggests that PBR is likely nearing a long term bottom. The largest spikes in volatility were in 2003, 2009, and now in 2014. Also, the falling wedge (bullish formation) may suggest a break-out to the upside.
Each RELATIVE entry point ended up delivering massive returns. With that said, there will be continued volatility, however $10.27 is a VERY good price in my opinion. I will most likely open a (100k) position in PBR tomorrow.
LT PT: $20-$30. Questions? Comment below. Thanks.
PBR Base Formation with Upside Target ZonePlease fix the label as "LONG" instead of "NEUTRAL". Thank you.
PBR has had a long bear market this year, falling from over $32 to under $18 along with a massive slide in the Brazilian stock market. PBR is a major element of the Brazilian stock market.
The sellers have knocked down the price of PBR to bargain-basement levels, but it has been like a falling safe.
What has happened to the shares over the past three months is a base-formation has formed. Although we are at the top end of that base formation, the key is that the base formation seems solid. The downtrend was violated (see the downtrend channel) and the base has been formed (notice the lower volume, on average, in the down days) and now we can project up quite a ways for a rally.
Be prepared for some volatility as the stock can move 10% in the course of three days. Keep position size down. I will build into a position over a period of days and will leave stock to buy in 5% corrections.
Tim West, 5:00PM EST, Monday, July 30, 2012
