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BP p.l.c. Message Board

  • nycenvironmental nycenvironmental Jul 10, 2013 8:22 PM Flag

    Top 10 Reasons I'm long 1000 shares of BP

    Currently worth $42,120. I just entered this position 2 weeks ago after playing the sidelines 3 years after the spill. My background is in Environmental Studies although when I was studying in college 20 yrs ago, I was long energy stocks. Here is why I am placing my bet to the long side:

    1. They will get away with the spill. They will pay billions, but it will be billions less than the street expects.
    2. Scarcity of Oil Super Majors. There are only 6 in this category for investors to choose from.
    3. Rising Oil. Oil charts are bullish on nearly every chart you look at.
    4. Dividend. Currently over 5% and the potential earnings growth could keep it there at higher prices.
    5. International Exposure. US, Africa, South America, Asia and Australia.
    6. Fundamentals. It is trading at book value. Over time it's P/E and P/B should double to that of XOM & CVX
    7. Technicals. Charts are showing hardcore consolidation at $40 per share and future breakouts at $60 & $80.
    8. Diversity of products: Oil, gas, natural gas, lubes, service stations. They are all here to stay.
    9. Corporations always win. Politics, corruption, greed. Every country, every year it's the same story.
    10. Exiting renewables. They are getting out of solar and wind which will never be as valuable as black gold.

    We should see $80 soon after the trial is over. Buy and Hold BP and put the dividend back into the stock.

    Sentiment: Strong Buy

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    • I'm holding 2547 shares and need BP to go up another $1.98 to break even on share price. Not worried though because those nice divs have more than paid the share loss. Will HOLD.

    • BP is not a good long term investment. It has not been.

      At over $100 per barrel, people are looking for alternatives, and there are quite some.

      Better to invest in aircraft leasing companies (AER, AYI, FLY, ...), which grow their shares in aviation market. They are better investment in almost every statistics, and have been out-performing BP.

      • 1 Reply to boblee_ma
      • lol. are you kidding?? did you watch FLY the last 2 days??? I did. I own some. I wish I had my FLY investment in BP. FLY is down nearly 20% in 2 days on secondary offering and poor pre earnings announcement. the secondary will reduce current shareholders equity by 30% maybe you short BP? you should have shorted FLY. BP won't have a secondary offering. they are doing a buyback. better know what you are talking about before posting......!

        Sentiment: Buy

    • mental
      Well put.
      Agree on everything you say.
      I'm also in for 1K and might add another 1.5K if it goes back down a little bit.
      I've owned BP so many times through the years I can't keep count and never lost any money.
      Bought 2.5K 3 years ago and cashed out 18 points higher beginning of this year.
      Oil stocks have been my favorites for 30 years of trading because everybody uses the stuff.
      Never lost a dime on oil stocks.
      Can't say the same for other stocks though.

      Sentiment: Strong Buy

    • well said. I share your opinion and am also long BP. sizable investment. my first BP buy was 2 months before the spill. I have since added to my original position 4 times, 2 on the way down, 2 on the way back up.

      Welcome aboard.

      Sentiment: Buy

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