Brazil's vote to move forward with President Dilma Rousseff's impeachment improved the outlook for Petrobras (PBR) - Get Petroleo Brasileiro SA Sponsored ADR Report as the potential for the embattled leader's ouster increased, Action Alerts PlUS portfolio manager Jim Cramer said Monday.
"I thought Petrobras was one of the world's worst stocks because didn't think there could be regime change in Brazil. It looks like there is going to be regime change in Brazil," Cramer said after Sunday's vote.
Petrobras stocks closed at $6.72 on Friday and opened at $6.31 Monday. The stock stood at $6.54 on Monday afternoon.
Cramer noted that a change in leaders could affect the Brazilian real currency as well as the Petrobras stock.
"What does (regime change) mean? It means the real is going to continue to strengthen," Cramer said. "It means Petrobras is going to be pretty good. I don't really care for Petrobras, but just be aware that Argentina has now gotten better because of a change in government."
"If Brazil does boot Dilma, then Brazil's going to get better," Cramer added.
The Rio de Janeiro-based oil company has been struggling recently while its home country is embroiled in a political crisis where Rousseff is at the center. She served as chairwoman at Petrobras before becoming president. Meanwhile, the company has disposed of $7 billion in assets to pay down debt.