Watch List, Saturday, 03/14/2009
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by James Brown
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HAVING TROUBLE PRINTING?
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New Watch List Entries
Setting Up for Oil
Dropped Watch List Entries
None
PBR - Petroleo Brasileiro SA - $30.06 +0.19
Company Info:
We are Petrobras, Brazil's largest energy company. We are divided into four business areas: Exploration and Production, Downstream, Gas & Energy and International, plus two support functions: Finance and Services, not counting the corporate functions reporting directly to the president. No matter where you go, Petrobras is there, whether in Brazil or abroad. We are present in 23 countries on four continents, such as the United States, Mexico, Angola, Nigeria, Tanzania, Libya, Mozambique, Senegal, India, Iran, Pakistan, Turkey, Portugal, Bolivia, Colombia, Ecuador, Peru, Venezuela, Uruguay, Paraguay, Argentina, China and Japan, and count on the support of our offices in Houston, New York, London, Tokyo, Singapore, China, and Chile.(source: company website)
What to Watch:
PBR bottomed in November 2008 and has been building a bullish pattern of higher lows since. This past week produced another rally but shares failed to clear the February 2009 high. While the trend is bullish I'm a little concerned that some of the technical indicators suggest PBR could be weakening. Currently I am watching for a dip back toward the 50-dma and its rising trendline from the 2008 lows.
Unlike previous watch-list candidates we are not listing any entry points to buy LEAPS - at least not yet. I do think PBR will be a great LEAP candidate but I want to make sure we get a good entry first. FYI: The Point & Figure chart is bullish with a $44 target.
Chart of PBR:
PDE - Pride Intl. Inc. - $18.05 -0.00
Company Info:
Pride International is one of the world's largest offshore drilling companies with an increasing focus on deepwater and other high-specification drilling services. (source: company website)
What to Watch:
PDE is another oil services stock that has done a pretty good job of building a base over the last several months. The trend of higher lows is bullish. Unfortunately some of the technical indicators are showing bearish divergences and the volume is drying up on the bounce, which is worrisome.
I do think PDE may turn out to be a good LEAP call candidate but I want to watch it and see if it delivers another bounce from its trendline. Unlike previous watch list candidate I'm not listing an entry point to buy LEAPS at this time.
Chart of PDE:
