Let’s blow 5K on BP Shares

sabretoothtigger

Still worth it if they just keep their head above water. Main negative is if oil prices fell which I dont think they will hence bp will be ok. At some point their position will look shaky and vice versa but hopefully between the two extremes it will step higher


I did read today the guy who shorted Enron on seeing a shaky business model and suspecting the worst has much the same thoughts on oil companies and their failure to extend their prospects further.

However oil shares worldwide seem to be already cheap, its not like the miners who bounced back so quick.

His argument is they are not able to sustain the high dividend payouts, well bp is there already so worst case scenario to me seems to be there is no good news in which case I dont think they'll plummet .
Risk reward ratio is good

spike87

I am very interested in buying some BP shares. I'm going to keep my eye on their prices very closely over the next few days and if they drop below 400 again I will probably end up sticking 1k in there. Do you just look on the usual share websites such as HL and iii and when you find the share price you want just buy? These will be my very first shares. I will not need this money and am prepared to take the risk.

sunil1234

spike87 wrote: »

I am very interested in buying some BP shares. I'm going to keep my eye on their prices very closely over the next few days and if they drop below 400 again I will probably end up sticking 1k in there. Do you just look on the usual share websites such as HL and iii and when you find the share price you want just buy? These will be my very first shares. I will not need this money and am prepared to take the risk.

if you have a dealing account, you can just place an instruction to buy if the share is at/ below a price specified by you

regards

Jonbvn

Thrugelmir wrote: »

The problem for BP is that pre disaster. Around 25% of profit was generated from North American operations. BP is selling off core non US assets to raise the cash it needs. So if Congress impose a 7 year drilling/exploration ban, as has been mooted, on BP. Then the Company will come extreme pressure to maintain profitability and oil reserves.

The whole issue is complicated by the fact that if the US Congress do enforce the exploration/drilling ban, this is likely to lead to an increase in oil prices.

ninky_2

further news...
http://news.yahoo.com/s/yblog_upshot/20100914/od_yblog_upshot/massive-fish-kill-reported-in-louisiana

Thrugelmir

ninky wrote: »

further news...
http://news.yahoo.com/s/yblog_upshot/20100914/od_yblog_upshot/massive-fish-kill-reported-in-louisiana

If you read to the end of the article.

UPDATE: The
Louisiana Department of Wildlife and Fisheries investigated the fish kill and determined that it was the result of low oxygen levels caused by low tides and high temperatures.

sabretoothtigger

Bullish on oils

Nutt has remained overweight BP and Shell is the biggest holding in the Income Trust despite the travails of the former. He remains bullish on the mid term prospects for BP despite its dividend suspension.

BP formed 6.36% of the Income Trust and 5.89% of the High Income fund at the end of July, and Nutt said there has been little significant change since.

'[BP] has over £75 billion of free cashflow and we see a robust outlook. If the Libyans are right the oil price will go to $100 and we know that Opec want it there. We never believed it was under pressure.'

Nutt has been a long term holder of BP and while he concedes that the Macondo Well blowout has been 'a disaster for publicity' he has remained unstinting in his belief the firm 'will see its way through the current process.'

'As a long term investor, on a three to five year view we expect BP will return to the dividend list as soon as politics allow. There is plenty of rhetoric from the Russians and Americans about what a valuable resource oil is.

'There is great long-term upside and in the context of BP this is an extremely good opportunity in terms of accessing dividend flow.'

With around 19% of the Income Trust in oil and gas, Nutt admits he has does not want to take the weighting any higher.

'It is where it needs to be and I don't want to have any more in oil,' he said.

http://www.citywire.co.uk/money/bond-investors-soon-face-once-in-a-lifetime-opportunity/a430495?re=11077&ea=249194

hodd

Over 430 today

Thrugelmir

hodd wrote: »

Over 430 today

The 3rd quarter results are what everbody is waiting for.

The announcement has been pushed back a week into November. So now the well is capped. A reasonable assumption is that BP will try and get all the bad news out the way. Throw the kitchen sink etc into the results so to speak.

Sceptic001

From BBC website:

BP boss expects new year dividend

BP may resume paying a dividend to shareholders in the new year, incoming chief executive Bob Dudley has said.

In an exclusive interview with the BBC, he said BP's board would meet to discuss restoring the dividend in the coming months.