Will the Showdown in Latin America Cause Problems For Petrobras (PBR)

With Venezula, Comlombia, and Ecuador pounding the war drum I have to think that this can not spell good news for (PBR) Petroleo Brasileiro. With Venezuela providing 10% of US oil and Correa in Ecuador teaming up with Hugo Chavez you have to imagine that Bush will jump in if things get icky.

Again I can't imagine that this will spell good news for PBR.

With this region becoming geopolitically hot and Oil consumption probablly going down. I would revise my $100 price point to $80-90.

Short PBR and watch Latin America

(PBR) Petrobras and (YHOO) the short facts

(PBR) Petrbras shorted at 118.80
(YHOO) Yahoo shorted at 29.65

Update on Short Positions

Sorry I haven't updated anyone on my short positions but I have shorted both PBR and YHOO. PBR was shorted when it was above $120 I know the stock was over inflated and now the news of a decrease in PBR's profits is sure to send this stock back down to the $100 range.

I also believe this YHOO deal is going to be a bust. The companies are like oil and water and even if it does get close to becoming a reality I am sure the EU will not allow Microsoft to gobble up Yahoo.

Excerpt From Chris Liddell - CFO of Microsoft - Why this merger won't happen

If your wondering why the merger between Microsoft and Yahoo won't happen all you have to do is look at this quote :

CHRIS LIDDELL: Well, no one asked me about Yahoo, which is interesting. But I'm sure everyone is vaguely interested in it. You know, their —

MARY MEEKER: What was that? What was that?

CHRIS LIDDELL: Yeah. The small company that we're looking to acquire.

Can anyone say Corporate Culture Clash !!!