Blackrock, the largest asset manager in the world, has been avoiding investing further in shares of Petrobras at the moment. Will Landers, its manager who oversees $ 6.5 billion in investments in Latin America, showed his frustration in an interview with newspaper Estado de Sao Paulo.

The manager told the paper that the sharp drop in the stocks recently is not really an opportunity for investors to get in… in other words, he called the company a “bull trap”. He said the company has no positive catalysts to lift the stock in the next few years. Landers mentioned that even the company’s CEO Graca Foster warned that the company will not show growth until after 2014. His negativity lies in the history of the company to “failing to deliver on its the goals”.

And remember, Will Landers is the guy who predicted that Bovespa would reach 85,000 points in 2011 and 2012… here we present his very own words from an interview in mid-2011 ( the year that Bovespa lost 20%):

… economic fundamentals have not deteriorated. We are at an interesting ‘buying’ point. With the recent slide, the return potential has become interesting. I’m not changing my expectations for the index to reach 85,000 by the end of the year.”

Given his erratic forecasts from the past, perhaps is it time to buy Petrobras now? The contrarian signal has flashed green.

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5 Responses to Sell Sell Sell! Blackrock’s Landers frustrated with Petrobras’ stock

  1. Rafael says:

    C’mon: Let me fill some gaps in the message: Sell it me cheap!! Don’t think if it can fall any further.
    PETR4 is now by far the most undervaluated oil company in the world. Who buy it for a 10-year long maturity will make a very good investment.

  2. Brazilian Bubble says:

    We agree Rafael… it might take some time to go up but it’s trading cheaply compared to other oil companies. If you are a value (patient) investor, great. If you are a trader, forget it.

  3. frank stein says:

    I AGREE WITH LANDERS. THERE IS NO WAY THEY WILL STOP LOSING MONEY IMPORTING AND SELLING DISTILLATES AT LOSS FOR THE NEXT 10 TO 15 YEARS. THERE IS NO MONEY FOR EXPLORATION. PRODUCTION WILL KEEP FALLING. THE GOVERNMENT NEEDS TO CHANGE THE MODEL BUT IT IS UNLIKELY THE STUPIDITY WILL BE LIFTED.

  4. alexny says:

    You guys must not know how PT government operate to say petrobras is a good long term investment !!, the situation is a lot worst them it seems!!

    That is how they do thinks, corruption and complete control of media, lots of fake numbers.. by the time you hear something is wrong everything is already lost .

    Forget about any investment in brazil for the next 20 years, and if you have any, get out ASAP , wait for a new government

    Brazil at present is in the hands of a gang of dangerous criminals

  5. CRB says:

    I have to agree w/ Alexny. For the last 10 years, Petrobras (PETR4) has been very poorly managed, and it seems that it’ll continue on this trend for some time I’d say, as the brazilian government is using the company to try to keep the inflation index under control. And just to mention one example of how poorly managed the company has been, the scandal over the Transcor/Astra Group-Pasadena transaction (when PETR4 bought the Pasadena Refining System Inc (PRS) for a overvalued amount, and in the end, PETR4 had basically a loss of $1.2 bi) is yet to be investigated (and considering the speed of thing in brasil, maybe by 2020, we should have a preliminary analysis on the case)…

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