Any firm that has the U.S Fed in their pockets for 1 billion a year, for the next 18 years to 2032 is a sell. To many other cheap oil plays to buy without all BP Baggage.
So in the stoke of a pen BP Gave away 18 Billion. A billion dollars a year, one quarters net earnings when oil was $50.00 a barrel going to the FED ad States. Yet yesterday the big news was BP lawyers were fighting in court to get back a measly few million of overpayment. It makes no sense me. BP gave away the mother ship a full quarter or more of EPS nd now fights for a measly few million. Run to not walk to the exits ...
50% dividend cut coming.
when BP cuts the dividend, ad Feds raise rates and dollar climbs... $25 easy.. Whats U.S. Mrkets are 50% overvalued.
Would not buy this with dead peoples money..
reason why the markets are going to crash TZA.
89 by Friday
I'm thinking 1/ 2 point
Why anyone would hold this risk bucket is beyond me... Not worth more the 25.
1. The Overall Economy, was last market tremors of the last three a warning of what's to come in a market that has risen 8 years straight mostly driven by Federal Government Intervention in interest rate manipulation and Quantitative easing, which has left a 4.5 Trillion dollar hole in the U.S. Treasury Balance Sheet, which could grow to 70 Trillion if the Feds becomes the sole REPO trader.
2. The UP Coming Debt Ceiling talks in Washington, with a all Republican House and Senate.
3. The upcoming Interest Rate Hike, as one economist said 20 years of zero rates in Japan, did nothing for the Japan economy. Thus, the higher rate hike will boost the dollar and lower the rice of OIL.
4. The new BP Shareholder the Federal Govt and States who will Scrape 1 Billion of EPS off the top for the net 18 years.
5. The Shareholder Class Action Lawsuit that does have merit and will be settled for close to 5 billion, as soon as BP board of directors feel they have the cash to do so.
6. Then there is the one to one lawsuits that will go on in the courts for years, raking off another 200 million or more in legal costs per year.
7. The price of oil and gasoline
8. The slow down in China, with 60% raked of the top some 2 to 4 trillion, plus the 3 Trillion in currency losses taken by firms around the world, has not really yet settled. Just to much money for those losses, to be buried, so i expect much more volatility ahead.
9. Iran, The IRAN deal is to Political, so I don't think it will go thru, but that does not mean Russian and all the other countries will not lift the embargo, especially Russia. Thus, even with no deal IRAN will be sending some millions of barres of oil to the market.
10. Lastly, the Dividend come NOV, based on the 3Q were oil price were in the 45 to 38 range. I would with 100% probability forecast BP cutting their quarterly dividend to .35 to .40 a share. That could be .25 if OIL demand weakens further after labor day.
So I see BP trading range next 12 mth 27 to 36.
Deals done... dotting the eyes.
90 Days the number 2 will behind SLB. Will be $59 to$60 HAL then SLB at $75 to$80
$55.00 a share stock and Cash Bid.
Sentiment: Strong Buy
You all know that...
Get out now..