BP - off the hook ? ...and a BUY ?

tradetime

Lokolo wrote: »

What do you use?

Software problem was with eSignal, couldn't find the problem, data manager would not load. For recovery, if that's what you are asking, first call is FDISR a file based recovery program, last resort would be Paragon Drive Backup, an imaging software.

turbobob

@ Bollingbrook - BP pays quarterly dividends so times your dividend figure times 4.

EDIT too slow.

Bollingbrook

tradetime wrote: »

The dividend value you are looking at is a quarterly value.

Thanks. Does this mean that all this fuss over BP suspending their dividend - and the market subsequently ditching holdings - may be very short-term view and that it may just be the next quarter or couple of quarters without dividends, but not necessaily no more dividends for a year? Does a dividend yield of almost 10% make BP shares attractive as a longer term investment at this price?

graemecarter

tradetime wrote: »

BP's Credit Default Swaps have soared 200 basis points, trading at a level indicative of the company losing it's investment grade rating. It could be that the US administration has decided to attempt to force BP to insolvency whereby they could justify an asset grab.

but BP swaps are not traded that frequently, so I wouldn't read too much into that price.
Bond yields will give a better representation of risk of default as the bonds are more liquid.

I piled into BP on Tuesday, so I'm in for the long haul.......

tradetime

Bollingbrook wrote: »

If I buy shares through a share dealing service I assume I receive the dividends.
What exactly is dividend yield for BP at current prices?
I know they may, or may not suspend their dividends for now, but longer term is the dividend yield itself a good reason by buy BP now?

Rough current yield can be found here

http://www.digitallook.com/cgi-bin/dlmedia/security.cgi?username=&ac=&csi=10022

If you are buying purely for the dividend, I would say, no, buying BP is not the smartest thing. There is considerable risk to this company from the current US administration, and you could get decent dividends elsewhere without the risk overhang.

amcluesent

Obviously British support for America's 'war on terror' means nothing to Omabalamadingdong. 'Call me Dave' Dave should be on the hotline this minute and make it clear to Omaba that we won't be lifting a finger to help America if they destroy one Britain's largest companies.

tradetime

graemecarter wrote: »

but BP swaps are not traded that frequently, so I wouldn't read too much into that price.
Bond yields will give a better representation of risk of default as the bonds are more liquid.

Excellent point!

Lokolo

tradetime wrote: »

Software problem was with eSignal, couldn't find the problem, data manager would not load. For recovery, if that's what you are asking, first call is FDISR a file based recovery program, last resort would be Paragon Drive Backup, an imaging software.

My computers will never crash so didn't need that

Free 30 days trial of eSignal. I need something to get me occupied during the day in my final year so might give that a go

tradetime

Bollingbrook wrote: »

Thanks. Does this mean that all this fuss over BP suspending their dividend - and the market subsequently ditching holdings - may be very short-term view and that it may just be the next quarter or couple of quarters without dividends, but not necessaily no more dividends for a year? Does a dividend yield of almost 10% make BP shares attractive as a longer term investment at this price?

A dividend yield on it's own is not a reason to buy a stock, you would buy BP now for longer term if you believe the selloff is overdone, if you believe the US will not destroy BP. The dividend would simply be a nice bonus.
If BP are forced to suspend their dividend a lot of funds would be forced to sell, that would probably be a very good entry point, I suspect that may have had something to do with yesterdays selloff, someone decided to unwind a large holding and cut their losses.
It is more likely if BP takes any dividend action, it will be to reduce it, this would allow funds who invest for dividends to remain holders of the stock.

Fair disclosure I own a position in BP stock purchased since the disaster.

tradetime

Lokolo wrote: »

My computers will never crash so didn't need that

That sounds interesting, how do you ensure that?