SHORT BP (and go long detergents)

globalds

Maybe BP will be looking down the pipe as well

Maybe BP are thinking of blaming others..

http://www.businessweek.com/news/2010-04-29/cameron-plunges-on-concern-over-role-in-oil-rig-blast-update3-.html

Cameron International Corp., the second-largest U.S. maker of oilfield equipment, had its biggest decline since 2008 in New York trading on concern over possible liability for a Gulf of Mexico rig explosion and oil spill.
Cameron dropped $5.77, or 13 percent, to $38.70 as of the 4 p.m. close of the New York Stock Exchange and traded as low as $34.65. The Houston-based company said yesterday that it provided so-called blowout preventers for Transocean Ltd.’s Deepwater Horizon rig, which caught fire and sank after an explosion last week.
Other companies connected to the incident, including BP Plc, which owned the well the rig was drilling, and Halliburton Co., which provided oilfield services on the project, also fell after the U.S. Coast Guard said 5,000 barrels of oil are leaking into the Gulf, five times more than previously estimated. The oil slick, which is about twice the size of Maryland, is drifting toward the U.S. coastline.

Wobblydeb

JamesU wrote: »

No idea, do not do HYPs. Guess at +6% yield, and provided divi cover is there, no problem long term. Out of curiosity yesterday, checked when I last had an oily and it was indeed BP sold in Feb 08. Was referring to the fact iii set RDSB as the first staple in an income building portfolio (link below) and this brought back memories of those old Motley Fool HYPs. Your contrarian and opportunistic play with BP is more in character given the specific etfs that were discussed some time ago.

JamesU

http://www.iii.co.uk/articles/articledisplay.jsp?section=modelportfolios&article_id=10095218&catEnforce=star

LOL, yes I guess I am quite contrarian. I have been building my BP holding but stopped recently, feeling the price had got a little high. Had some success purchasing STAN on drops based on sentiment and felt SOME similar factors were at play with BP. I may well be proved wrong in the short/medium term but it will not hurt to hold long term. Opportunity cost could be the most important factor....

Wobblydeb

TRUSt_NO_1 wrote: »

The quote says he wouldn't be surprised if they fall in the coming weeks ...

So, how much have you shorted them for? You're sure sounding like a de-ramper...

lvader

Craig12 wrote: »

BP are loosing money .

Current costs are about 10% of what they make in profits, yes it's going to be expensive but in 10 years time this will be a blip on the radar.

lvader

No what I'm saying is that in 10 years time it will be as if this never happened.

Mat_P

TRUSt_NO_1 wrote: »

see what I mean about detergents and BP being took to the cleaners ...

Don't suppose you have the faintest idea what the feedstock for most detergents might be ?

1echidna

Sold my shares on Friday at 573.5p. Reckon I got a good price for them. BP will recover but as far as the US is concerned (where they are a foreign company, with no shortage of US companies capable of occupying spaces they vacate) they will be hammered. This comes after the Alaskan spills and the Texas City Explosion. They are now accused of lying about the rate of oil leakage which is now said to be five times the figure originally quoted. Things are looking increasingly grim as events unfold.

lvader

1echidna wrote: »

. They are now accused of lying about the rate of oil leakage which is now said to be five times the figure originally quoted. Things are looking increasingly grim as events unfold.

Actually the US authorities have started to change their tone on this, steps have already taken place to reduce the flow of oil which have at least been partially sucessful. The other issue is that because huge amounts of dispersants have been used it is difficult to estimate the oil flow. The ultimate fix is likely to be the relief well and the eqipment for the drilling arrived on location yesterday.

1echidna

lvader wrote: »

Actually the US authorities have started to change their tone on this, steps have already taken place to reduce the flow of oil which have at least been partially sucessful. The other issue is that because huge amounts of dispersants have been used it is difficult to estimate the oil flow. The ultimate fix is likely to be the relief well and the eqipment for the drilling arrived on location yesterday.

Have seen no reports on this. Do you have a link? I have seen suggestions that the flow may actually be increasing.

lvader

All the latest info is here.

http://www.deepwaterhorizonresponse.com/go/doc/2931/535447/