despite the good 5% yield, the PPS is stagnant in a rising market. am suffering opportunity costs while holding. unhappy. without the buyback, this stock drops. doesn't matter that financials and earnings look good if company is not popular with the investment community. September ruling is a far way off and there are no guarantees there. altho this is not a stock to play short, it is not a stock that should be expected to provide capital gains either. That yield is not replacing opportunity costs. doing much better with COP. may have to dump here. altho i am totally disinterested in Vikki's opinions, what do you think? aren't you beginning to feel disappointment? this stock is simply no fun. appreciate feedback
I feel your pain. I held the stock for years after BP bought out ARCO in 2000. Finally decided to start trading it and have done much better. As someone noted on another message, try to make money on the one to two dollar price swings, which has worked much better.
I'm long. However, I follow BP every day and ride the roller coaster. I do not need to sell my stock for six to seven years. The dividend pays my mortgage and I hope the damn thing doubles in six years. If you are less than three years......take your profits and play the market......especially if you are under 50. One last note, another reason why I bought BP is that I totally expected it to trade in its own world.......not the regular market. I found comfort in that because, sooner or later, the market is going to go down. BP trades in a unique universe. Good luck.
Why did you buy this stock in the first place if not for the fantastic dividend? Of course it's not going anywhere for awhile, at least not until a dollar value has been placed on its DWH liabilities. If your goal was to make money via cap. gains over the near term (6-18 months) then obviously BP is NOT the place to be, that's kinda general knowledge by now.
Anyone long on this stock is in for the longer haul (2-3 yrs) and happy to receive the fat divy in exchange for the long wait plus risk. To be sure the liability issues are a big wet blanket, but don't get depressed over all the negative news regarding the trials, lawsuits etc. This stuff will be worked out one way or another.
You say you're suffering "opportunity costs while holding", I'll assume you're not seriously underwater at this time. If that's the case, pick a point where you'd like to bail out & write a nice covered call to pick up a little extra coin. For example: look at the 5-JULY $43.50 call currently bidding at $0.49. This option will expire July 5th and you'll receive 49-cents /shr. in premiums immediately. If BP closes above $43.50 by the expiration date, your shares will be assigned (i.e., sold @ the strike price of $43.50), you do nothing. Since I don't know your basis, I can't say whether or not the trade will be profitable. If BP closes below $43.50, you keep your shares & premium, maybe you'll sell the the shares anyway just to get out. I write covered calls on BP all the time, helps enhance the dividend payments.
Another possibility is to actively-trade the small $1 to $2 swings we see on typical volatility. That's about all I can say at this time without more information regarding the number of shares, purchase price, when-purchased, etc. As always, JMHO, good luck.
Crichton, you have me interested. my cost basis is $41.84 and i hold 1315.61 shares. i may take a run at the July 5th call at $43.50. curious, what would you suggest? my target is $50.00 PPS with date of early Oct. 2013.
also, thank you for your reply and time. i am holding. yes, 5% yield is good but i get better else where with seemingly less risk. however, diversification is important to me and oil, COP and BP are a component.