BP will almost certainly announce that Top Kill has failed soon. They will then try to explain and convince us all that their next attempt will seal the leak. When BP does officially announce that Top Kill has failed and proposes their new plan how will the stock react on Tuesday? Will investors lose all hope for a successful capping of the leak and tuesday stock price reflect that? Or will BP be able to keep our hopes high like last week and keep stock price flat or even move higher?
This is the US Stock Market...games will be played!
I expect there to be some kind of bogus rally with the usual stock line: "traders felt the selloff was overdone" (as they did with Thursday's one-day "rally"
In reality, it will an orchestrated run, no doubt fueled by fairy tales spewed by the usual promoter/pumpers like Cramer. Insiders and big funds will use these mini rallies to dump their holdings, and as usual, gullible middle-class traders will be left holding the bag.
The main attraction of BP stock was it's dividend, but I think it's probably safe to say that dividend is history, along with much of the Gulf Coast.
Will BP be able to continue to convince investors with these "fairy tales" to hold or keep buying their stock until the relief holes are drilled months from now? Several months from now is it possible for BP stock price to remain where it is at now? Or will it most likely have tanked or recovered by then, nowhere in between?