I kept watching BP stock go down, as people overreacted to the spill. Granted, it is a bad thing that happened, and thankfully this one incident will greatly strengthen the safeguards in the industry. It usually takes something like this before safeguards are seen as necessary and fully implemented in an industry.
Anyway, the stock, which normally has hovered in the ~$55-$60 range and paid nice dividends for years, dropped enough on all of this negative tv coverage to the point where the company looked more and more like a value stock.
When the stock dropped another couple of dollars yesterday, I couldn't resist any more. I put about 40% of my Roth IRA in BP.
I consider it a very, very good value investment for the medium term - about 3 to 5 years. Should give about an average 8% or 9% dividend over that period, and stands roughly an 85% chance of also growing the share price by 10% a year during that time.
wow! I'd suggest you put a stop loss on this, and keep a constant eye on it. And hope that the leak gets stopped soon, not only for your Roth, but for the earth's sake.
good luck to you and our Mother earth
You still have time to save your position by buying puts with the other 60% of IRA. Ask investment advice from a professional, avoid asking people on this Message Board. People here have their own agendas. GL. Peter
I hope for your sake you are kidding! BP is toast and so is Liar in Chief Obama. I have property in Grand Isle. It's worth zilch thanks to this big Ape. But......my buddies and I put our money together and we shorted the hellouta BP. Wish we could short the hellouta Democratic Progressive Party. They're toast!
1-Stock went down not because there was no reason for it
2-What happened is not as easily dismissed as " a bad thing".It is a catastrophe.
3-If it was a value stock, far more sophisticated firms would have been all over before YOU instead of dumping their shares.
4-Yesterday's drop is just another day. To think you nailed it the LAST time it dropped is silly.
5-Big mistake to put your IRA unless it is an insignificant number. You are buying into a stock that could worthless an hour after you bought.
6-It is a HORRIBLE investment short, medium, and long term.
Their survival is defined in days and hours now.. They don;t have a middle or long term.