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

Masomnia

fairtrade wrote: »

Yes WWII debts have been paid and Labour used this as a photo opportunity, but we still haven't finished paying for WWI.

There are bonds from the 19th Century still in issue, just because the debt is still outstanding doesn't mean it can't be paid for. The government could redeem the bonds any time it wanted, just chooses not to because the rate of interest is lower than other outstanding gilts.

Bollingbrook

BP shares trade at around £3.60 on the FTSE and $31.70 on the NYSE. I assume they trade different shares on each stock exchange - can anyone explain how this works?
Also there seems to sometimes be a gap between the previous days closing price, and the following days opening price - how does this jump in price occur outside of stock exchange trading hours? Is it do do with the shares being adjusted on the FTSE depending upon evening trading on the NYSE?
Can anyone explain this?

artha

1echidna wrote: »

I recently came across this comment from the US:

"How about the rest of us sue the shareholders for their role in helping create this catastrophe?"

I have seen the suggestion before that anyone who held bp shares at the point of the Deepwater Horizon explosion somehow bear some responsibility for the disaster, and if company assets are not sufficient to pay damages, fines etc the shareholders should be called on to pay the extra. Must admit the suggestion makes me slightly uncomfortable. Ethical investing has been a discussion point in recent years but this seems ridiculous, or is it?

What if those US parties who have received money from BP as part of their election campaigns were also sued. That link seems to have gone very quiet

olivetti

1echidna wrote: »

I recently came across this comment from the US:

"How about the rest of us sue the shareholders for their role in helping create this catastrophe?"

I have seen the suggestion before that anyone who held bp shares at the point of the Deepwater Horizon explosion somehow bear some responsibility for the disaster, and if company assets are not sufficient to pay damages, fines etc the shareholders should be called on to pay the extra. Must admit the suggestion makes me slightly uncomfortable. Ethical investing has been a discussion point in recent years but this seems ridiculous, or is it?

Two words; Limited Liability, shareholders are only liable to the amount they invested.

StevieJ

olivetti wrote: »

Two words; Limited Liability, shareholders are only liable to the amount they invested.

I think Saloman v Saloman (1897) is the authority although the corporate veil can be lifted in certain circumstances e.g. fraud.

Fairwinds

Bollingbrook wrote: »

Also there seems to sometimes be a gap between the previous days closing price, and the following days opening price - how does this jump in price occur outside of stock exchange trading hours? Is it do do with the shares being adjusted on the FTSE depending upon evening trading on the NYSE?
Can anyone explain this?

The closing price is what the market makers were prepared to pay for shares when the market closed - it doesn't follow that they will be prepared to pay the same the following morning, when there as been many happenings during that time across the world.

StevieJ

Not only do the BP partners not wish to share the costs, they wish to sue BP :eek:

Anadarko Petroleum, which owns 25 per cent of the ruptured oil well in the Gulf of Mexico, on Friday accused BP of “reckless decisions and actions” and indicated it might sue for actions that it said “likely represent gross negligence or wilful misconduct”.
Anadarko is responsible for 25 per cent of the clean-up costs. Yet while those costs are more easily absorbed by BP, which had revenues of $239bn last year, they could be significant for Anadarko, with revenues of $9bn. Moody’s, the credit rating agency, yesterday cut its rating on Anadarko to junk status and indicated that it could cut further owing to uncertainty over the costs it would incur from the spill.


“The mounting evidence clearly demonstrates that this tragedy was preventable and the direct result of BP’s reckless decisions and actions,” said Jim Hackett, Anadarko’s chief executive.
BP said it “strongly disagrees” with Anadarko’s statement.

http://www.ft.com/cms/s/0/889bd8d0-7b30-11df-8935-00144feabdc0.html

ixwood

So, who's bought shares? Anyone tempted? Any target prices?

I'm tempted, but not when's the best time..

sabretoothtigger

Bollingbrook wrote: »

BP shares trade at around £3.60 on the FTSE and $31.70 on the NYSE. I assume they trade different shares on each stock exchange - can anyone explain how this works?

The main listing is LSE (london) and 6 shares equate to the price in NYSE (new york)

The exchange rate just now is 1.48 dollars

The company is global, bp probably has more assets in america then uk but certainly right now the nyse listing is important in leading the price


Its 30 dollars mainly because americans like big numbers, its the same company basically. NYSE trades 14:30 to 21:00

Because sentiment stateside is so vitriolic the price has been lower which has prompted hedge funds to step in and perform arbitrage. The prices should always be roughly the same, ownership of one share type I believe gives you rights to the other if you choose

Hedge funds can buy and sell shares before trading which could see big price jumps.
Last week they bought up nyse shares the previous night and sold the uk ones as we opened the next morning.
Then as nyse opened again they sold off the shares there also which led to another price dip at 14:30 and they kept the change left over, probably some millions


355.74p or $31.59

$31.76 or 357.65p



Theres no big gap there right now it seems, the market on friday was strangely quiet. It was options expiry day also




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Price target generally was 365 but we just closed below that so it becomes a negative focus. However the nyse is more positive in that it has fallen so far its on the floor.

It might best to track the euro and crude price in general as BP's fate will depend on the parts of the world it still produces profits (most of it)

JamesU

ixwood wrote: »

So, who's bought shares? Anyone tempted? Any target prices? I'm tempted, but not when's the best time..

I bought BP early June but they went through a stop loss within days. The shares are trading even lower now, and still an interesting gamble. However, my personal sentiment has changed, too disgusted by the rhetoric and facade in the US which is beyond reasonability. Genuine cases in the US aside, I find the prospect of BP potentially subsidising everybody and his dog on a gravy train with the full backing of deluded politicians and lawyers too unpalatable. Shareholders have to keep abreast of this nonsense and I do not have the stomach for it, irrespective of BP fundamentals, size of future escrow funds/damages vs profits/assets, future drilling etc. BP is in the sales constantly at the moment, but it is no longer on my shopping list. Plenty of other opportunities without the unpleasantness.

JamesU