Exxon's spill cost them 750 million and barely touched their bottom line. BP has 10 Billion in free cash flow, 1 billion of which is dedicated to the DIV. Can you still make money short on this????Maybe, but buying at these levels is easy money if you can look through the garbage on these message boards. Their losses on lawsuits will be capped, otherwise you'll have three companies that could afford drilling offshore in a time when those efforts are set to EXPAND. Easy money.
no chance it goes below 60 anytime soon, they'll slow down production well before. I don't expect a huge short squeeze, but as in a month or two this will be back to 52 without any good new, ad the 7% div, you're at 20% w/o breaking a sweat in the next year and closer to 35% by this time next year. You better time your cover correctly so you don't get stuck holding the bag, or worse start paying my dividend.
Whore St has been very good at storing oil cheaply for itself and passing the cost on to consumers while praying for the jobless, recoveryless recovery to nowhere actually starts to recover. It's not. Things continue to get worse. Unemployment rising. Bankruptcies rising. Foreclosures rising. Yeah, govt data points to "a solid recovery..." lol!