profile, PBR -- thanks, this was thought-provoking even though I didn't quite get all of it. If I decide to take a large stake in PBR I will consider this stuff more, right now I am only planning on buying a relatively small amount of stock and 1/13 calls.
So for the amount of funds I am putting into this I am happy to just be spoon-fed, I only have a finite amount of time for this stuff so I have to pick the spots in which to employ such time. On this stock I have been fed by 3 spoons so far, Morgan Stanley, RayJames, and mcdep.com. The production graph at page 2 of mcdep's report (see mcdep.com really jumped off the page -- PBR is expecting its production to surpass Chevron's this year, Shell's by '14, and (by extrapolation) they might even top Exxon by '20.
Regarding the issue of off-balance sheet financing, one of the real positive's from the Enron fiasco was that the opportunity for companies that followed US GAAP to play around with this sort of thing was sharply diminished. For companies that followed International Financial Reporting Standards (IFRS), these sorts of games had always been hard to play, since IFRS is more "concept" based vs. "rules" based. In any event, PBR has converted from US GAAP to IFRS this year, and has issued several quarterly reports under IFRS. If they had been at the edge of the envelope with respect to disclosures on a US GAAP basis it is certain that things would have popped up in connection with this conversion. |
