Oil up, gold bouncing off lows. Suspect this is a good time to add to GLD, the gold ETF.
Am trying to go along with the banks stock wave. Last night bought FAS, the 3X supercharged financial ETF. Would love to dump it for a day trade. I don’t trust nuttin!
Abbott Lab (ABT) is off over 4% as it announces a $3 billion bond offering. On the news I bought a little more at $51.50.
PBR, the Brazilian petroleum company is participating in oil rally. As you may know, Petrobras (as it is known) has discovered an oil field off Brazil’s coast. This find could rival Saudi’s in terms of barrels. But this is a very deep, deep field in deep, deep water. The company has orderd a boat to be built for over $800 million to drill. Drilling could take pipes down to magma. When Chevron drilled in the Gulf of Mexico they spent tens of millions exploring four miles down. The pipes started to shake badly and the company feared a Krakatoa ( 1883 eruption of Krakatoa) episode, They seriously thought the earth might explode at the site. So, Chevron pulled out and another company took over and pushed through the next layer and found pay dirt. Petrobras may experience the same issue but for now they are being rewarded for the find. The development of the field(s) are going to terrifically interesting to observe. BTW, PBR has a complicated structure with heavy state ownership. It is not a pure corporation as we know them. A significant percentage of expenses as well as profits go to the state.
