SHORT BP (and go long detergents)

TRUSt_NO_1_2

BP is going to the cleaners ...shame about the Gulf of Mexico

martinfollower_2

So anyone fancy buying BP shares now in the hope they will rise again soon?

home_alone

Its a pity that you can not just pump it out of the sea and into you car that would solve the problem just imagine millions of Americans standing on the beach with hoses. My sister is on Longboat Key Florida she would be the first one on the beach.

Wobblydeb

Actually I topped up - I've been following conversations on the iii forum and feel reasonably confident that the costs will be less than the recent drop in value of BP. Am looking forward to the quarterly dividend

As always - DYOR

lvader

BP's response has been pretty decent, instead of playing the blame game they are doing all the can to minimise the effects of the spill. The cost of the cleanup is going to be small compared to the potential losses from reduced reputation and credibility and they know this. If they can do a good job and set the blueprint on how to deal with this sort of disaster they could be in a stonger position than before it happened. I bought more shares on Friday.

JamesU

Wobblydeb wrote: »

Actually I topped up - I've been following conversations on the iii forum and feel reasonably confident that the costs will be less than the recent drop in value of BP. Am looking forward to the quarterly dividend

As always - DYOR

So you are not one for the iii equiv of Motley HYPs? .

JamesU

amcluesent

Obama can't really be too harsh on BP, America needs every drop of oil and only last week he signed off a 5-year plan for more drilling so it's in his interest to help as much as possible with the National Guard etc.

Obviously he'll have to be seen to be crying his eyes out over the dead birds, but is America really going to start walking to the mall?

JamesU

amcluesent wrote: »

Obama can't really be too harsh on BP, America needs every drop of oil and only last week he signed off a 5-year plan for more drilling so it's in his interest to help as much as possible with the National Guard etc.

Obviously he'll have to be seen to be crying his eyes out over the dead birds, but is America really going to start walking to the mall?

For sure. But earlier this morning BP confirmed it is taking on the clean up and compensation costs and presumably this will be absorbed without inurance. Roughly, Exon clean-up $5 billion, compensation up to $5 billion = 10% post-slick market cap? Difficult to price this in to the share price.

JamesU


http://newsvote.bbc.co.uk/1/hi/world/americas/8655683.stm

amcluesent

>Roughly, Exon clean-up $5 billion<

It's now well known that the eco-marxists/NIMBYs make way too much of an issue about oil spills. All that guff about a barren landscape for centuries just doesn't happen, marine populations of many species recover within a year

StevieJ

I sold BP and Shell in previous tax year to crystallise my capital gains, I only bought Shell when I repurchased, phew :beer:

sabretoothtigger

Stevie you have irritatingly good luck :laugh:

Obama can't really be too harsh on BP, America needs every drop of oil

The reason Shell might be a better choice and have a faster rising share price is shell will be mostly a gas company by 2012.

Obama could just shut down oil drilling if he felt like it. USA has enough energy reserves for the next 60 years if they want, its in natural gas not oil.
Everything all the way down to cars can run off gas if people wanted, the price is at all time lows and the fumes are breathable just like a cooker

There is a bill passing through congress presently I have read. Politics is often utter bs so you can judge it for yourself but the possibility is there




BP go ex div on Wed, market is closed on monday which means you have just one day to decide. It might be the price rises for that reason alone but its only a quarterly and shell's is on the same day

The price is harder to judge, it might be that the stock market is turning around. BP price is about Feb lows, overall reasonably priced but if that was the case why not have bought it in Feb already before they had the bill for this

Exon clean-up $5 billion, compensation up to $5 billion

Exxon appealed and in 2008 paid just half a billion