They'll do everything they can to prop up the price while pension funds and the big boys slowly get out. After that you'll see news stories start to appear than they won't be able to meet the financial obligations for the cleanup. Then it goes to 0 just like Enron.
Assuming the employee's have a 401K plan and the company match is BP stock they will be the ones who pay the price.
dont be fooled. the liability for the gulf spill will be the largest ever faced by a single corporation. be careful. p.e. are really only valuable if future earnings are expected to increase. bp will be lucky not to be in receivership within a year. i wouldnt load up just yet.
Honestly forget all you hear about them... Due your own research and think about how this will affect BP when the liability claims and fines, court costs, attorney fees, repair and clean up and everything starts putting a dent in thier checkbook. Not only that, the fact that there are people wanting to boycott now so future earnings cant accurately be projected. Personally I would not view them as a wise investment at moment, and just incase you are wondering YES I AM SHORT and havent much fear in stock going above where i shorted and remaining before i cover. They shouldn't receive any bailout from US Government, this isnt a question of over manufacture or bad book keeping, it at this time is a situation they had happen and not clear to anyone who/if is to blame, if they do get bailed it should come from the other
side of the pond(Atlantic). If you are here to brag how strong a buy/sell company is have links to legitimate news or reports to back what you say. In the business world usually pending mitagation and other bad publicity brings the value way way down and doesnt correct to quickly. This 30% price drop IMO isnt the bottom yet. It may still drift downwards when Mr.Hayward has run out of options that his newly hired PR office has just about exhausted all this phoney image improving he has recently begun. I for 1 do not buy any of his campaign, you seen the real him the way he acted and answered questions prior to his newly hired personell thier job is strictly public image promotion... It has begun to be highly political since the public has been involved more
They will pay the dividend.
I don't care if this stock goes to $30, as long as they keep paying the dividend it will only be a matter of time before the stock is back at $50+ and meanwhile I'll make 10% gains on the div.
But will they be able to keep paying it? They can't let BP go bankrupt. It is too closely knit with the fabric of the British economy.