When the Valdez hit bottom in Alaska while the Captain was sleeping off his hangover, this spill was truly a very and costly liability on Exxons part. A month after the spill I bought many shares of Exxon. OK it was a gamble but I'm a long term holder and believed that after the blood in the streets is cleaned up Exxon will be a better company. I won big time, and expect that BP will be diligent in the clean up unlike the other companies involved putting their heads in the sand and avoiding all responsibility. The investigation will take some time. But in the end BP will, like Exxon, recover. And that is even if they are at fault. Which I think they are not. IMHO
Good post. To me , it's not even that complicated. BP already lost 30 billion in MArket cap since 4-21, the worse case clean up clost will not cost the company even 1/5 of that. Of course it's a buy at these levels.
Shure lots of GOOD things to list about the larget oil spill in all of history.You are joking.You pumpers suffer from selective logic.You are aware of the liability cap raise.You are aware that they still cant stop the spill.You are aware that ceo has publicly assumed all costs of the cleanup.You are aware that obummer has sworn on tv that he will force bp to pay.So go ahead and spin all the pluses to a company that is responsible for killing more wildlife and ruing more coastline and costing more economic damage THAN ANY ONE COMPANY in all of history.You believe that swill you are spillin' .ps the donkeyboy sucks donkeydick.
the difference between the Exxon and this is the Valdez had a defined amount of oil on board it. Only the amount of oil in the ship was the amount of oil that spilled into the water. With the Gulf of Mexico catastrophy we have a major leak from a well where there is potentially no end in sight. They said it can take months to drill the relief wells. A potentially unlimited amount of oil as of now is spewing into the Gulf every day. So the two scenarios are very different. Im neither short or long this stock
I do not argue that you may have a logical argument.however.there are many obvious differences in this situation than valdez.one is the size and scope of the spill and cleanup.in this case it is many times larger.another is the area of the gulf is far more economically damaging than in alaska.so way back when exxon had no major difficulty surviving that spill.it would not have and neither will bp survive a spill with these costs.they will run into the tens of billions of dollars $ in cleanup and economic.what did valdez run?2 bil maybe?
bp only has 6 bil cash.they need that just to operate plus they have 32 bil in debt.event the current xom has only 13 bil cash and 9 bil debt.they could probably survive barely.but bp no way unless they manage a gigantic capital raise.which will be difficult and very very dilutive.so bp goes under or shares go to book?about a buck.by the way xom has a book of 23 bp has a book of under a buck.
Before you believe any data on Yahoo Finance, you need to check it against a couple other sources to make sure it isn't part of the screwed up data on Yahoo. Book value per share is one of the items that is incorrect on Yahoo.
BP book value per share
Daily Finance: $31.77
Ockham Research: $33.24
Yahoo Finance: $00.92
You see, Yahoo's figure is completely out of whack compared to other sites.
Here are the links so you can check it out yourself:
The rumors of BP's death are greatly exaggerated.
Please stop with the caps! There are many differences between this and Exxon Valdez, some good, some bad. You fail to see mention any of the good. This is light crude, not heavy crude. These are warm waters so the oil will evaporate much more easily. Response has been much better this time compared to Exxon. We have yet to have a significant amount of oil come ashore like Exxon, and wildlife on the coast(except for a few dozen birds) is largely unaffected thus far. Cleanup and response over the past three weeks has totalled about $350mn. If this continues for 3 months (hypothetically), this would cost what? about $1.5bn? Which is about on par with Exxon Valdez and considering inflation, is pretty cheap. Considering their cash flow and how this will drag out in the courts for the next several years, it's unlikely BP will not "survive" this.