Some Bullish Picks from Robin Hood Investors Conference

Jim Chanos Thinks Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) is a Scheme

Kynikos Associates‘ manager, Jim Chanos, was also a speaker at the Robin Hood Conference. During the conference, Chanos spoke with Bloomberg TV‘s Stephanie Ruhle and said that Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) is very connected to Dilma Rousseff, the current president of Brazil, who was the chairman of the company. There have been many scandals and investigations involving the connection between Rousseff and Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), and currently everything regarding Petrobras’ stock depends on the outcome of Brazil’s elections. However, Chanos still thinks that there is a lot of corruption at the government-controlled company.

“[…] The economics are just so poor at Petrobras that we would call it a scheme not a stock,” Chanos said.

Moreover, the investor thinks that even if Rouseff does not win the elections, the  new president still won’t be able to sort all the problems that Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) has sunk in. The company has taken a lot of debt, and has been spending a lot of money, but its cash flow has not been growing.

Stanley Druckenmiller‘s Duquesne Capital added Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) to its equity portfolio during the second quarter and owns around 1.7 million shares as of the end of June.