This company is just selling everything they have. And their leadership is incompetent and dishonest. Remember Q1 conference call, the CEO spoke about the commitment to TNK BP and how Russia is important with the forward outlook. Then a few weeks later, they announce they are selling TNK BP holdings.
I understand BP is trying to say they are leaner meaner safer, but in the end, really, do you trust a management that drops the ball over and over? They are unloading assets they spent billions investing in. The upgrades to the TCRefinery amount to more than a billion. The gas assets are being unloaded where the market is at the bottom, and how are GOM fields non strategic assets? They are producing. Why pull the plug unless BP is desperate for cash? TNK bp is a mess, and there is no end in sight to the litigation from GOM, DWH. So you tell me, how is this stock a buy at this level? To say the least, it's a risky bet, and you do keep betting on a horse that isn't a winner? The fact is. This administration is going to bankrupt this company. The Russians are going to keep the dividend. And Bp will be broken to pieces after declaring chapter 11.
Back in the late 1980's, I left GE Plastics corporate headquarters. At that time, I told one of the people there that GE would be done with GE Plastics in 15 years. At the time Jack Welch ran GE, had come from GEP, and the person I spoke to acted like I was nuts. Plastic's people were riding high, like the SS back in Nazi Germany. Many in other GE divisions actually feared them.
Well, I got it wrong. GE didn't get rid of GE Plastics in 15 years. It took 'em 18. (To a Saudi company, no less.)
This guy is right. BP is on it's way down, and quickly, rather than the slow exit of GE Plastics. BP's documented poor maintenance of equipment, poor safety and environmental management, poor morale and other factors are leading to the selloff and reduction of operations. It all adds up to a poor reputation -- and who wants to buy from or work with a loser, when there are many winners to choose from?