Jim Chanos Says Petrobras is a ‘Scheme, Not a Stock’ [FULL TRANSCRIPT]
http://www.valuewalk.com/2014/10/jim-chanos-says-petrobras-is-a-scheme-not-a-stock/"The problem is is that in fact the company is cash flowing about $25 billion, $26 billion, so-called EBITDA, and its CapEx annually is $45 billion, and another $5 billion of capitalized interest. So their – their gross cash flow is only covering half of their capital spending and capitalized interest, so they’re not covering their dividend. And in fact they’re having to borrow the shortfall, and they’re borrowing more than $20 billion a year. This is an enormous, enormous sink hole from a financial point of view."
Brazil’s Rousseff Admits There Was Wrongdoing at Petrobras
