What are these? Do they matter to long-term investors? Why yes they do, and thanks for reading this informative post about this important subject. Let's talk about the opportunity costs associated with owning BP over the last 2 years. While BP has traded lower due to the overhang of the titanic-sized liabilities from the Macondo disaster, you have watched other oil company stocks rise. Conoco, Exxon, the list goes on. And you have lost money, that most precious resource...the only thing you have to make your nest egg grow.
But what about that "hefty 5% dividend" you ask. Well, I'm glad you did, because I want to address that, too. Even with the 5% divi, you are still losing out to the other stocks that have traded up more than 5% a year AND ALSO HAVE NICE DIVI'S!!
Let's face it, the math is simple. Even if you think this oil spill is overblown, it doesn't matter, THE LOST OPPORTUNITY COSTS ARE KILLING YOUR PORTFOLIO, AND RUINING YOUR FUTURE!!
Think about that and make the right decision. You'll be glad you did, and you can thank me later.
Thanks for reading, and have a wonderful day.
Sentiment: Strong Sell
As much as I hate to say it, at the end of the day, this is the #1 reason you should not invest in BP. From an opportunity cost perspective this stock is a dog and you are losing money just being here. I originally thought that the market would drop and I choose BP because of its divy and the potential for good news would be a win vs the rest of the market. That has cost me a lot over the last year as the entire market has performed and BP has lagged. The good news I thought was coming has become no news to bad news. I cannot believe that years after the spill, when there is no trace of oil, we are still beating up this company. They hyped it as the end of the world and looked at it..........What a joke! It will eventually rise, but who has the time to wait. The only thing good about the depressed price is think of it from a stock buyback..........WOW, what a great price BP is getting. Ikki has been 100% correct up until now and that #$%$ me off and by the time she is wrong, she will be long gone.
What you are saying is rue IF you have a crystal ball. Most investors don't have one. I used to have one, bought it at a government auction, but it sucked and I threw it away. Without crystal balls people buy things like AAPL or JCP among others and get hurt, hurt bad. BP was a better choice in the past year. Sofar that is. Investing is all about now and the future and a lot less about history. Thats why you buy "pork belly futures" and not "pork belly histories".
Wish I could buy pork belly histories; I always know exactly what I should have done when I look backwards! Also, I believe you can buy crystal balls at the dollar stores. Of course, you get what you pay for. At any rate, if you drop them, you'll definitely get your balls broken.
oh brother. lol. too much. you are lecturing us on opportunity costs. that's rich. thanks anyway but I think we understand perfectly without your pretentious post. what you aren't taking into account is that longs, like the market itself, is all about the future. I sold COP and only trimmed BP. there have been many stocks I own that have outperformed BP. I don't think the oil industry as a whole is all that good an investment. but for the oil majors, BP has the highest yield and the lowest price per earnings. I also continue to believe, despite YOUR rants, that BP will prevail in the court system. even IF BP is found grossly negligent, the vast majority of the uncertainty will be removed and BP PPS will outperform the oil sector and the market as a whole. oh, how is Tommy doing? is he hiding? Did he borrow any money from you? I sure hope you didn't give/lend the creep any.
Sentiment: Strong Buy
False. I am correct. Look at any other stock in sector and BP investors have lost money. The future gets worse, because the settlement costs and liabilities have yet to hit BP's bottom line and WILL DO SO IN 2014. That's a fact, and the stock WILL DROP once earnings are adjusted downwards.
As to Tom, all I can say is you messed with the wrong guy. He's in high-level government IT security and has powers no one should mess with. He's very credible, if you read his private stuff. Thanks to you, he can't post anymore since you compromised him or whatever. Nice job, just leave other alone, and I'll send money to whoever I want to. You're not the boss of me