O Grande Offering

For those interested in the Petrobras offering, my understanding is the following. The secondary offering is greater than $70 billion but the majority is going to the Brazilian government, leaving roughly $30 billion for the public. Bids are due today and allocations will be known Thursday night.

I will be out tomorrow and Friday and will return Monday. I am leaving in a limit order to take off a portion of my hedges in case we do get a large swoon. Have a great weekend.

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2 comments:

Anonymous said...

My feeling is that Petrobras will be a good stock picking in the short run because bad news were priced in. Petrobras is a good investment if Pre-Sal reserves has the pontencial disclosed by the government. There are some people allegedly specialists who doubt. However, I am not specialist for opining. Foreigners should know that the main expertise (and the only one) of the corrupt Brazilian left wing government is propaganda. If the left wing candidate chosen by the current president lose elections, investors can count on sabotage by the gang against Petrobras. The recent trend shows that there will be a second round. The odds of the gang to win the elections will fall very much in this case.

Anonymous said...

(continuation) Recent attacks of the current president against the free press caused very negative impacts in various sectors of society. In addition, scandals (how much novelty!) of persons belonging to the entourage of the president increased the odds of a second round.