AltaVista does not view XLE as a bargain on valuation. The research firm estimates the ETF’s 2015 price-to-earnings ratio to be 33.8 before falling to 23.9 next year. That is well above AltaVista’s estimated 2015 P/E for the S&P 500 of 17.5. [Big if for a big Energy ETF]
Chanos has been bearish (and right) on major global oil stocks in the past. In unveiling his bearish view on Shell, Chanos skewered Brazil, the efficacy of its energy data and its corruption history, reminding investors of his shorting or Brazil’s state-run oil company Petrobras (NYSE: PBR).
Chanos has since covered his Petrobras short, but even with a one-month gain of over 29%, Petrobras is still down 48.4% over the past two years.
iShares Global Energy ETF
