From BI: Last November Jim Chanos spoke about his "two favorite shorts" at London's Ira Sohn Value Investing Conference, both were Brazilian companies. Today we'll just talk about one —Petrobras, Brazil's state oil company. This month it's getting negative attention from journalists and investors alike.
But first, Chanos' thesis (in case you don't remember). He said that state management was suffocating Petrobras' profitability. Basically, the company is drilling expensive oil fields with expensive machinery and hiring workers while the government suppresses oil prices…..