The buttplug burned a half billion in about a week they now have about 5 billion left in cash.they cannot last more than 2-3 months without a capital raise.and how do you do a secondary when everyone knows you are on deaths door????and we all knew this yesterday.now we know the disaster is about 14 times the size.they are done.bp cannot survive in my opinion.if they owe you money you better get it now.they wont be around much longer.
lets do a little review for the pumpers.
former net asset value before this accident was $81 billion.minus $21 billion in stock losses,minus $20 billion paid to the obummer,minus about $3 paid for cleanup so far.this leaves you a net asset value of $37 billion.with a current market cap of $89 billion bp needs to go down more than 1/2 to catch up to this new NAV.
but they still need to pay at least $50 billion more in cleanup.$50-$250 billion more in fines.$100 plus or more for economic damages.so no a takeover is impossible by a company.but yes the us govt will seize all assets for payment once bp moves to bk.
pumpers better remember.reality bites. the obummer will never allow bp to gut the company with large asset sales.they will indict them soon.then move to seize those assets to protect the american people.
as far as the relief wells.even if they work.they are about 3 months too late.even after the first month bp was already doomed by the sheer quantity of this spill.
they have a huge rally on the so called news that they wont do a secondary...people forget they bought back $21 billion in shares at over $60 bucks. they must re-issue these shares at a huge loss before bothering with a secondary.
Soon.Very soon.They cannot ignore the numbers.They have been leaking 33000+ barrels a day for 50 days.That is over a 1.6 million barrel spill so far. by August.That number will triple.This cleanup was to be over $20 billion when they estimated only at the most a million barrels.Now we are looking at at least 5 times that. Over $100 billion for just the cleanup and maybe another $50-100 billion in economic damages.Longs better crunch some numbers.They dont add up to BP surviving.