In the past two months BP has lost 50% of its valuation dropping from around $60 in mid April and is about $32. In the same time Chevron and Exxon have only taken a 10% fall and Total and Shell only about 20% so to me it seems people are just very scared of BP due to the uncertainty over fixing this leak and have panicked and in the bear irrationally wiped $100bn off its value.
I have seen suggestions that BP will cut its dividend by up to 50% which has contributed to its fall in value however from what I have read it's liability from this disaster will be limited by law and considering it has nearly $7bn cash on hand (in addition to the cash held by other liable parties like Transocean and Halliburton) it would seem BP not be in a better position for dealing with the financial aspect of stopping the leak and cleaning it up.
Being an optimist I would almost be ready to take a long position and hold onto BP stock until it heads back towards the $60 it was trading at before the leak however I am well aware of people predicting a far more dire future for BP.
In the short term if they announce they will have to cut the dividend will the stock drop further or has it already been discounted to reflect this fear?
In the longer term if there is a strong short term movement against offshore drilling will this affect BP shares or will its operations in Venezuela, Canada, the North Sea, Europe and Asia serve to protect it against decreased productivity in the gulf region?
With regards to the suggestions that BP will go bankrupt and be taken over due to its liabilities which some have predicted will amount to tens of billions does anyone have any thoughts? Exxon after the Valdez disaster as we all know was in a similar situation but ultimately escaped without having to pay its liabilities in full and thrived and given that liability is also likely to be shared by Halliburton and Transocean are fears of bankruptcy an overreaction?
I am interested in hearing any thoughts on BP stock as along position at this current time.
Thanks,
Michael.
I have seen suggestions that BP will cut its dividend by up to 50% which has contributed to its fall in value however from what I have read it's liability from this disaster will be limited by law and considering it has nearly $7bn cash on hand (in addition to the cash held by other liable parties like Transocean and Halliburton) it would seem BP not be in a better position for dealing with the financial aspect of stopping the leak and cleaning it up.
Being an optimist I would almost be ready to take a long position and hold onto BP stock until it heads back towards the $60 it was trading at before the leak however I am well aware of people predicting a far more dire future for BP.
In the short term if they announce they will have to cut the dividend will the stock drop further or has it already been discounted to reflect this fear?
In the longer term if there is a strong short term movement against offshore drilling will this affect BP shares or will its operations in Venezuela, Canada, the North Sea, Europe and Asia serve to protect it against decreased productivity in the gulf region?
With regards to the suggestions that BP will go bankrupt and be taken over due to its liabilities which some have predicted will amount to tens of billions does anyone have any thoughts? Exxon after the Valdez disaster as we all know was in a similar situation but ultimately escaped without having to pay its liabilities in full and thrived and given that liability is also likely to be shared by Halliburton and Transocean are fears of bankruptcy an overreaction?
I am interested in hearing any thoughts on BP stock as along position at this current time.
Thanks,
Michael.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today