i'm going to 'save' this comment of yours
and 'send' it back to you in 3 months when
BP common is over $40/shr. true; it don't
seem possible right now because 99% of those
who comment think this $50-$75 bln crisis
has to paid out in 180 days instead of 12-15
yrs. it 'is' a big deal; but a big deal over
the next decade-plus. in the meantime, BP's
cash-flow continues to grow. they keep pumping
and sell oil.
um, you realize that there are two companies here. BP America, inc. is liable for the spill and BP plc issues the stock. Sure, BP plc is the sole stockholder of BP America, but they don't have any liability past the value of their ownership and lost future cash flow from BP America. Just like any regular stockholder.
In a bankruptcy the most BP plc should go down is the value BP America contributes (assets + discounted future cash flows). It might be a little more due to the fact that BP plc. seems to be doing the right thing and making good on the costs and liabilities, but if things get out of hand with lawsuits and fines, they'll have no choice but to walk away from BP America.
I haven't see hard numbers on the value of BP America vs. BP plc. but my gut feeling is that the full value of BP America, plus a little bit more, has already been discounted from BP plc's stock price.
I'm not going to predict the low the stock price will hit, but it certainly isn't going to zero.
that is 100% incorrect. The parent company is 100% responsible, in the event the liablity goes beyond the American company's capacity.
If what you are claiming was true, they would simply create a new llc for every well drilled, thus limiting their liability to each one's capitalization.
No, big brother is 100% on the hook; and, they've acknowledged as much.
I have to agree, but i am still not shure about the disscount on price i think is more than what has been disccounted. Also BP name as an international brand is
in jeopardy. I advise to walk away for another two months and see what happened. To risky