Hello, I'm looking to add possible an oil company to my portfolio, and it seems to me that BP is good possible buy at these levels. My question is... where is BP currently with legal litigations with the spill? and how do you guys think it will affect the pps once it's finalized? Is now even a good entry point? any thoughts?
I am thinking that bp is so big that even a big spill won't have any effect 5 years from now.
Enron was cheating investors, BP was cutting corners and the fact that haven't had another spill look good. Remember exxon valdez. I am tempted to buy
gfaria, perform your due diligence and you will find that BP is a Strong Buy. do not take the advice of someone shorting BP. if Vikki is so forthcoming, ask her what her short position is. to date, she has not disclosed. BP conducting a very good buyback, dividends are great and were increased last November. PPS is stable to slowly rising. earnings outperform analyists. can go on and on here. however, BP is not for the faint of heart. you know the history. nonetheless, an important basic premise to apply is the simple "Buy low, sell high". this is the time. PPS attractive and P/E is most attractive in the industry. You will be buying into a good company having a bad time. there is no better opportunity to buy than at that time. the risk is built into the stock price and with a P/E at 5.94, it is obvious the shares are over sold. that is simple math, not an opinion. i stopped accumulating at $39/share as BP is over loaded in my portfolio.
IMO, and it has to be an opinion, litigation will continue for years. that said, ANYTHING close to approximating a final decision will be welcome as uncertainty always has a HUGE negative impact in the market and with a publicly traded stock. if Judge B assigns a simple negligence to BP's actions, stock will soar. if the decision goes gross negligence, stock will drop initially and then quickly recover due to financial metrics. BP may seem attractive to playing short but that is a ridiculous position to take. for instance, our Vikki has been paying out dividends for at least 3 quarters and has seen the PPS grow from 27.02 on June 21, 2010 post spill and has climbed from 36.76 on May 28, 2012. i have done well with it and feel that is only the beginning. booyah.
My advice is to short BP. The smart money is they will lose the appeal, be found gross negligent then have about 200 private lawsuits with punitive damages. It will be like Enron was, except BP destroyed the Gulf. Do a quick search of my posts for articles I mention that proves what I am saying.