5-Star Stocks Poised to Pop: Petrobras Energia

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Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Argentinean oil and gas company Petrobras Energia Participaciones (NYSE: PZE) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Petrobras Energia's business and see what CAPS investors are saying about the stock right now.

Petrobras Energia facts

Headquarters (Founded)

Buenos Aires, Argentina (1946)

Market Cap

$1.47 Billion

Industry

Integrated Oil and Gas

Trailing-12-Month Revenue

$3.80 Billion

Management

CEO Vilson da Silva (Since 2008)

Director of Exploration and Production Fernando Borges (Since 2008)

Return on Equity (Average, Past Five Years)

10.7%

Cash / Debt

$447.1 Million / $2.2 Billion

Other Highly Rated Oil and Gas Stocks

ExxonMobil (NYSE: XOM)

ConocoPhillips (NYSE: COP)

Chevron (NYSE: CVX)

CAPS Members Bullish on PZE Also Bullish on

Petroleo Brasileiro (NYSE: PBR)

General Electric (NYSE: GE)

CAPS Members Bearish on PZE Also Bearish on

Marvel Entertainment (NYSE: MVL)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 646 of the 669 members who have rated Petrobras Energia -- 96.5% -- believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars mrindependent and TSIF, both of whom are ranked in the top 2% of our community.

Just two days ago, mrindependent tapped the stock as a cheap way to increase your energy:

Petrobras Energia Participaciones engages in oil and gas exploration, refining, distribution, and electricity production. The company has a sound balance sheet with loads of cash. … Currently available for 0.79 times book value.

In an earlier pitch, TSIF expands on that bullish reasoning:

Huge South American exposure, strong reserves, two refineries, 600 gas stations, transportation, petrochemicals, electricity production in Argentina, 10% operating margins. ... Apparently, however, Mr. Market is not interested in energy stocks today. When the cutback in production caused by the economy, the cutback in development, and foreign control of a majority of the oil turn back in the other direction, Mr. Market will be sorry.

What do you think about Petrobras Energia, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Marvel is a Motley Fool Stock Advisor selection. Petroleo Brasileiro is a choice of Income Investor. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 28, 2009, at 10:17 AM, pondee619 wrote:

    "Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say."

    Brian:

    If CAPs is so important and SO many want to hear what you have to say, WHY do you continue to avoid playing YOUR "poised to" stocks therein?

    Are you still out there, Brian? Three months ago you said that creating a "poised to" CAPS player was a good idea. Are you as quick on acting on all the good ideas you come upon? Are you just lazy (posting the same article three/four times a day with no real comentary indicates this) or just full of it when you said such a player was a good idea?

    If anyone knows if Brian is still alive, please forward this to him.

    thanks:

  • Report this Comment On August 29, 2009, at 11:40 AM, deltafox2 wrote:

    Well, at least this "poised to pop" article gives those interested the opportunity to discuss the company & stock.

    PZE is and has been a medium to moderate sell recommendation throughout according to "analyst's" views on all sites I know. Whatever the value of these may be, they will tend to discourage rather than encourage investors in relation to other oil-producing stocks with better ratings (most of them have). PZE is pretty volatile (much less volatile though many other stocks though), trading between $5.50 and maxing out at 7$ the 9 months. Petrobras Energia seems to be a reasonably well managed enterprise (holding), operating in a difficult and politically unstable "frontier state" Latin American country according to common consensus. I'd really like to hear the view of someone in Argentina what they think of this simplistic outside view.

    PZE Q2/09 results were much better than Q1 (substantial loss); the results for the rest of the year remain to be seen. If anything, it's probably a pretty speculative stock. Buying on lows (around 6$?) seems reasonably safe to me due to the low book value and substantial moat + it's been a dividend payer in the past, as most oil stocks. What's in the future? Who knows.

    Occasionally, research oracle (http://blogs.iirgroup.com/?s=pze) provides a brief report on PZE. However, anyone knowing a site providing research and discussion on PZE - please post here.

  • Report this Comment On September 30, 2009, at 2:29 PM, QwertyHero wrote:

    Damn - This is the first time I have seen TMF call one right - up 180% today... why? I dunno...

  • Report this Comment On September 30, 2009, at 2:42 PM, Seano67 wrote:

    Well, it's a little difficult to find news on this company, but this huge upward spike today is the result of a reverse split, which as of right now actually leaves the stock a few pennies down from its $6.40 closing price of yesterday.

  • Report this Comment On September 30, 2009, at 11:39 PM, ikkyu2 wrote:

    It's nice to say that it's a reverse split, but no, actually it was not a reverse split.

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