"Crude oil remains deeply oversold on an intermediate-term basis, suggesting a rally sometime in the early fall," says Dennis Slothower.

The editor of Stealth Stocks looks to Petroleo Brasileiro SA (NYSE: PBR) as his latest "stock of the month." Here's his review of the Brazilian firm that is now the world's 8th-largest oil company.

"The founding of Petrobras was authorized in October 1953, with the objective of executing, on behalf of the federal government, the activities of the oil sector in Brazil.

"Over the past five decades or so, the company has become the country's leader in the distribution of oil products, an activity not covered by the government monopoly, and today it is internationally acknowledged as the eighth-largest oil company in the world.

"Leading the sector in the development of one of the most advanced deepwater and ultra-deepwater technologies for oil production, PBR was twice (in 1992 and 2001) awarded the Offshore Technology Company (OTC) prize, the most important award in the sector.

Readers of this space know that one argument I forward here is that in the era of elevated energy prices, oil/natural gas companies are likely to remain promising plays for the foreseeable future, barring the discovery of a cheap, widely-available, alternative energy. And among oil/natural gas companies, Petroleo Brasileiro is worth a review.

Petroleo Brasileiro SA Petrobras (NYSE: PBR) is Brazil's largest industrial operation, with oil/gas production, refining and purchasing businesses, and oil/gas transport services.

(Note: Petroleo's shares split 2-for-1 in May 2008.)

Analysts really like PBR's proved reserves of 15 billion barrels of oil equivalent, 12,900 wells, 16 refineries, 31,000 kilometers of pipeline, and astounding 5,870 gasoline stations. Further, analysts see 2008 production rising about 11-14%. The Reuters F2008/F2009 EPS consensus estimates for PBR are $4.91/$5.03.

The risks? Analysts have their eye on PBR's operating costs. Also, PBR's concentration in Brazil means a downturn in that country's economy will hurt results.

Stock Analysis: Petroleo Brasileiro is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from PBR's shares. Sell / Stop Loss if you were to purchase shares in this company: $78.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

Oil driller Transocean, Inc. (NYSE: RIG), whose shares have probed, but have been unable to move and stay permanently above $160 -- may have received the catalyst it needs to reach loftier price levels.

Transocean's shares jumped $8.34, ending at $155.54 after Bloomberg News reported that Petroleo Brasileiro (NYSE: PBR), Brasil's state-controlled oil company, leased about 80% percent of the world's deepest-drilling offshore rigs to explore prospects. That included the Western Hemisphere's biggest discovery in decades, the Tupi field. Further, the activity of Petroleo, also known as Petrobras, is forcing up day-rates for oil rigs. PBR also closed higher Thursday, up $2.00 to $68.27.

Further, Petrobras is in talks with Transocean to extend leases as much as three years ahead of expiration, Robert Long, chief executive officer for the Houston-based RIG, told Bloomberg News. Also, Petrobras plans to start pumping oil from Tupi in Q1 2009. Tupi is the largest oil find in North America since the 1976 Cantarelli field discovery in the Gulf of Mexico.

With the current challenging market conditions probably many of us are wondering which are those reliable stocks that could offer us a big profit in the next coming years. In the light of those questions, Gene Marcial's new book, 7 Commandments of Stock Investing, reveals his perspective over seven stocks that are considered to be worth buying and holding for the next seven years (check out BusinessWeek's slideshow of his seven picks).

Taking advantage of the experience he gained over the past 30 years, BusinessWeek's Gene Marcial shares his opinions related to investors' strategy to use market meltdowns for their own benefit, being able to turn the stock market panic into success.

Petroleo Brasileiro (NYSE: PBR), also known as Petrobras, is a petroleum company that finds, produces, refines, purchases and transports oil and gas products. It's domestic Brazilian operations involve more than 100 production platforms, sixteen refineries, almost 20,000 miles of pipeline and more than 6,000 gas stations. Subsidiaries invest in fuel alcohol, fertilizer and power generation endeavors. The firm's foreign units conduct exploration, production and supply operations throughout the Americas and Africa. The Brazilian government owns 32% of Petrobras and controls 56% of its voting shares. BP plc (NYSE: BP), Chevron (NYSE: CVX) and Exxon Mobil (NYSE: XOM) are competitors.

Investors came to attention earlier in the week, when the head of Brazil's National Petroleum Agency said that Petrobras and partners Repsol-YPF (NYSE: REP) and BG Group had made what may be the world's biggest oil discovery in at least 32 years. The Carioca find was said to contain up to 33 billion barrels of oil and gas. That would make it the third largest oil field in the world, with a capacity topping all the proven reserves in the United States (29.9 billion barrels). Petrobras officials have been cautious in their appraisals, saying that further drilling would be needed before any meaningful estimate of volumes could be made. The CEO said they would have a clearer idea of size in two to three months.

Readers of this space know that one argument forwarded here is that in the era of elevated energy prices oil/natural gas companies are likely to remain promising plays for the foreseeable future, baring the discovery of a cheap, widely-available, alternative energy source. And among oil/natural gas companies, Petroleo Brasileiro is worth a review.

Petroleo Brasileiro S.A. (ADR) (NYSE: PBR) is Brazil's largest industrial operation, with oil/gas production, refining and purchasing businesses, and oil/gas transport services.

Analysts like PBR's proven reserves of 15 billion barrels of oil equivalent, 12,900 wells, 16 refineries, 31,000 kilometers of pipeline, and 5,870 gasoline stations.