BP Oil Shares?

amoon72

Hi all,I have £1k in savings which I'd like to invest into shares. I openly admit to knowing next to nothing about the market, but presume it may be a great time to invest in BP Oil shares (in light of their current predicament).

I couldn't really afford to lose my £1k of savings, but am up for the gamble.

If anyone who understands shares could give me some advice on this, I'd be very grateful.

Thanks in advance, A. Moon.

olivetti

If you can't afford to lose it don't gamble it.

Don't base your decision on getting the go ahead of some random on a forum who you have no idea about.

Learn about the stock market, do some fantasy stock portfolios for months if not years before investing any of your money and make sure you are comfortable with losing it.

start at www.fool.co.uk

Sceptic001

amoon72 wrote: »

I couldn't really afford to lose my £1k of savings...

You have answered your own question!

sabretoothtigger

Doesnt seem that risky to me, I think chances of losing it are very slight if that was a question

Lets say you buy now for 405p and the price goes down to the previous worst of 295p.
You get 244 shares now, then in Sept 2011 you have to sell because the money was savings, you would have £709.

Most of its lost on bad luck and about £25 on costs

presume it may be a great time

dont presume. do or do not, there is no try

cashbackproblems

Those who call BP risky have no clue about trading or investing in shares and are those people who keep their money in a 1% interest ISA.

I have just bought 2k in BP and feel if your prepared to hold for 1yr once dividends return the sp will increase a fair bit. There are even safer shares you can look into like Vodaphone, Aviva, Tesco, Sirius Exploration (lol).

Use iii.co.uk as they are the cheapest.

sabretoothtigger

Even after plugging the Macondo well, challenges remain for BP
Questor recommends a "hold" stance on BP shares despite the oil giant finally sealing the Gulf of Mexico rig.

http://www.telegraph.co.uk/finance/markets/questor/8014002/Even-after-plugging-the-Macondo-well-challenges-remain-for-BP.html


In March Questor rated BP as a buy, one of his worst tips though he had said to buy since feb 09 I think

dealer_wins

If you cant afford to lose your £1000 then DO NOT buy a single share, as this is about the most high risk thing you could do apart from putting it on red.

Im sure a lot of people thought Lloyds@ £5 was low risk in 2007 LOL

marvin

It is unlikely you will lose all of it on BP they should start divi's again soon and the share value should build again.

BP is in a way similar to Lloyds they had a major catastrophy which they are currently recovering from provided you know what your pricing is at (what you want to buy at what is the top you will sell at) and you maximise your yield (this is the amount you have invested divided by the divi's recieved in a year) you should be ok.

Look back at how the Lloyds shares have reacted in the last 2 years and you should have a little more idea about what is happening to BP. It won't be a direct corelation and there is never a guarentee with shares, they can go up as well as down and in some cases straight in the Bin.

So do please heed the warning only invest money you are willing and/or able to lose do not make it your only savings and if you do decide to go ahead enjoy the ride it can be fun and scary at the same time.

Lower_North

I have bought some BP shares at this lower price, and am holding them in expectation of earning good dividends when they restart paying them next year.

On Bloomberg today it said it will take several years to get back to the pre-spill price because of litigation in US. This suggests BP is not a quick money making share but more a long term investment (with good dividends I hope)

marvin

dealer_wins wrote: »

If you cant afford to lose your £1000 then DO NOT buy a single share, as this is about the most high risk thing you could do apart from putting it on red.

Im sure a lot of people thought Lloyds@ £5 was low risk in 2007 LOL

LLoyds were priced at this prior to the disaster they experienced BP has already dropped it is now a recovery share (if an expensive one) and should be viewed in that light, like Lloyds.

sabretoothtigger

as this is about the most high risk thing you could do apart from putting it on red.

Im sure a lot of people thought Lloyds@ £5 was low risk in 2007 LOL

Point is its not the most risky thing. The currency is weak, it puts everything else in a better light.

Lloyds paid out 35p a share in summer 2008 I think, if you bought just as the market was putting in a 20% drop from the highs you'd have made money. Just so long as you also sold before the end of September, was a disaster after that

Point being, money can be made but you better know what you doing. On average long term stocks will rise and currency will be worth far less because one represents a company doing normal business and currency notes belong to a government in terrible debt

This suggests BP is not a quick money making share but more a long term investment (with good dividends I hope)

yea most likely. The price will jump around on news. The reality will be they have to use profits to pay off bills and costs, they screwed up no arguing with that.
Will they make profits? almost certainly the world wants more oil, so bp can pay the bills, why worry beyond that. Buy on scale