Let’s blow 5K on BP Shares

hodd

DiggerUK wrote: »

Speaking of Germany, I am of the opinion that the recent "best growth figures in decades" don't pass the smell test.
What say you from the inside.

If I recall the CNN story, Germans are still a stingy bunch, whilst the Made in Germany brand has lead to strong export sales. It’s hard to compare when the average German has no property of their own, drives an Audi, only pays into a state pension and still thinks they will be OK come pension time.

DiggerUK

By way of info, here are the BBC, and Guardian reports.
http://www.guardian.co.uk/business/2010/aug/13/german-economy-fastest-growth-ever
http://www.bbc.co.uk/news/business-10962017
+1 from the ex Celtic tiger
http://www.irishtimes.com/newspaper/finance/2010/0818/1224277069996.html

Through the height of the boom these type of growth figures were unheard of, then as if by magic the economic crisis turns on its head.
Does not pass my smell test.

ariba10

The big problem with the value of BP shares as I see it, is that the Americans will not be happy until they cripple the company.

cardsharps

hodd wrote: »

I think my 5K of BP shares can only grow in that time.

.

Famous last words. You should have bought when they were £3. So you've missed the boat.
I'd buy Shell instead. Then you'll get nearly 7% interest on your money while you wait for the share price to go up, you'll get nothing with BP.

hodd

cardsharps wrote: »

Famous last words. You should have bought when they were £3. So you've missed the boat.
I'd buy Shell instead. Then you'll get nearly 7% interest on your money while you wait for the share price to go up, you'll get nothing with BP.

Yes, I should have bought at 305, and I'm sure if I search this forum, I will find posts from your good self written in June telling others to buy BP.

But it would be good to hear where the Shell 7% interest comes from. Any links?

Thrugelmir

hodd wrote: »

BP is a Blue Chip company, and this current situation will be (sadly) forgotten soon.

BP will never be the same Company again. If you are investing on the basis of what BP was you need to research more. Even when dividends are reinstated they are unlikely reach the dizzy heights of before.

cardsharps

hodd wrote: »

But it would be good to hear where the Shell 7% interest comes from. Any links?

dividends, something which BP doesn't pay. When the American lawyers get their teeth stuck into BP they might never pay a dividend ever again.

turbobob

RDSB's dividend yield is about 6.2% at the current share price. Dividends are obviously not guaranteed going forward, but they are considered more dependable than capital growth. BP have cancelled their dividend for the rest of the year at least.

barak

hodd wrote: »

.....But it would be good to hear where the Shell 7% interest comes from. Any links?

More like 6% Yield at the moment, but no guarantee of what future dividends will be.

http://markets.ft.com/tearsheets/performance.asp?s=uk:rdsb&ftauth=1282169316385

Edit: You got there first turbobob

hodd

cardsharps wrote: »

dividends, something which BP doesn't pay. When the American lawyers get their teeth stuck into BP they might never pay a dividend ever again.

Oh dear. What about these links? And should I search for your June BP posts or is this another case of hindsight being a great IFA?

Thrugelmir wrote: »

BP will never be the same Company again. If you are investing on the basis of what BP was you need to research more. Even when dividends are reinstated they are unlikely reach the dizzy heights of before.

I don’t need dizzy heights. More than 398 will probably beat my current 2.91%. There are also loads of examples of companies, e.g. American Express, who nearly went bust.