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For the editor:
Ownership of oil and gas reserves, particularly in the United States, at a time when the dollar is depreciating is very comfortable (“10 Stocks to Play a Resurgent Energy Sector, From Our Roundtable Experts”, Cover Story, May 19 ). Precious stones and gold are outdated; crypto, very risky. Current production, on the other hand, creates a very satisfying cash flow and large cash distributions to investors.
Joseph King, On Barrons.com
For the editor:
Interestingly, two topics were not covered: Canadians, some of whom are the cheapest oil or gas producers, and midstream energy companies, some of which are showing promising advantages today.
R. Paul Drake, On Barrons.com
For the editor:
After carefully reading your cover story on oil investment opportunities and Craig Mellow’s International Trader column (“Brazilian Market Loves Its New President. 6 Stocks to Play”, May 19), I was amazed to find no accent on Petróleo Brasileiro, or Petrobras.
The American certificates of deposit of this giant multinational oil company, 29% owned by the government and arguably the jewel in Brazil’s crown, are trading at a huge discount to their peers. Petrobras has a current market capitalization of $74 billion, a forward price-to-earnings ratio of 3.9 and a good dividend yield.
It is technologically advanced and has huge reserves of offshore oil of exceptional quality. Its recently appointed CEO is politically moderate and has extensive industry experience. He hinted at buybacks of the company’s undervalued shares, and with the government’s treasury dependent on generous dividends from Petrobras, the CEO and board are unlikely to cut payouts too drastically. .
I’m certainly no expert, but Petrobras at today’s prices seems like a promising investment choice.
Michael G. Michaelson, washington d.c.
Tariff increase scenario
For the editor:
Regarding “Why an interest rate hike is still on the table for June” (Economics, May 19), a June rate hike followed by a pause should be less economically stressful than a June pause. followed by a later rise.
Ron Minarick, Mystique, Conn.
ChatGPT Companies
For the editor:
We are now in a new world of AI technology, which is changing every industry (“It’s time to think bigger about AI. These 8 stocks could be the next winners,” Tech Trader, May 19). Many companies spend millions of dollars on ChatGPT to take advantage of this new world application to acquire information. I think all investors should have one or more of these companies as part of their diversified portfolios.
Martin Blumberg, Melville NY
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