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Is it worth buying shares in BP?


doubleonothing
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Wait until the US Government has dished out a massive fine then buy, buy, buy.

 

Agreed. The bad news is certainly still out there. They will bounce when the leak is plugged but I can see them goig down further when the us suprem court files for investigations. Use the Texas oil refinary fire as a bench mark.

Edited by Made in Southampton
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As it is a British company, the oil giants over there will want to wound BP so it can't come back and compete against them again.If you want to gamlbe they fix the leak in the next 2 days then Im sure there will be a bounce but if the leak goes on for another couple of months then look out.

Sad that a massive British company that provides us wealth is in this state.

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Never try to catch a falling knife.

 

Agreed. However, I would look to see what happens at the 400p level. If it falls through this BP will go straight to 380p in an hour or so. If BP does not hold the 380p level it is in serious trouble.

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It is worth buy? Absolutely!!

 

I predict (confidently) that there will be a double dip.

 

Obviously, the share price will continue to fall over the coming days/weeks - I would be tempted to buy at around 350p. As soon as the leak is fixed the price will rocket up (to maybe 390p to 440p - from there it will float at around 475p. At this point I would sell half of the shares.

 

Then wait until the court proceedings start and an announcement of the fine is released - I would expect in the region on £7bn to £10bn of provisions in their 2010 R&A - This announcement will obviously push the price down considerably to around 375p. I would then buy again and hold on till it reaches 550p to 600p (obviously hold on for longer term investment).

 

All in all it would a medium term investment. If you're looking for a quick profit, then basically do the first step.

 

The reason I am so confident of this is because, ironically this event will help oil companies, as it will push up the price of oil in the medium/long term. Over the next couple of years there will be serious restrictions over offshore drilling in the US. This will lead to a significant rise in the world's oil price (close to 2008 prices).

 

In addition, I would recommend splitting your investment between BP and Exxon. Part of the reason that the US is "up in arms" is because it's a non-US company which has done this. Believe me, if Exxon caused this problem there would be a lot less political uproar.

 

Nevertheless, Exxon will profit from BP's short term issues - whilst, they will run into problems themselves, over offshore drilling plans, they will be given more favourable licensing than non-US companies. In addition, my comments about the oil prices rocketing up, will lead to Exxons share price to increase significantly over the coming few years.

 

Long winded I know, but I hope it's useful and CORRECT!

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It is worth buy? Absolutely!!

 

I predict (confidently) that there will be a double dip.

 

Obviously, the share price will continue to fall over the coming days/weeks - I would be tempted to buy at around 350p. As soon as the leak is fixed the price will rocket up (to maybe 390p to 440p - from there it will float at around 475p. At this point I would sell half of the shares.

 

Then wait until the court proceedings start and an announcement of the fine is released - I would expect in the region on £7bn to £10bn of provisions in their 2010 R&A - This announcement will obviously push the price down considerably to around 375p. I would then buy again and hold on till it reaches 550p to 600p (obviously hold on for longer term investment).

 

All in all it would a medium term investment. If you're looking for a quick profit, then basically do the first step.

 

The reason I am so confident of this is because, ironically this event will help oil companies, as it will push up the price of oil in the medium/long term. Over the next couple of years there will be serious restrictions over offshore drilling in the US. This will lead to a significant rise in the world's oil price (close to 2008 prices).

 

In addition, I would recommend splitting your investment between BP and Exxon. Part of the reason that the US is "up in arms" is because it's a non-US company which has done this. Believe me, if Exxon caused this problem there would be a lot less political uproar.

 

Nevertheless, Exxon will profit from BP's short term issues - whilst, they will run into problems themselves, over offshore drilling plans, they will be given more favourable licensing than non-US companies. In addition, my comments about the oil prices rocketing up, will lead to Exxons share price to increase significantly over the coming few years.

 

Long winded I know, but I hope it's useful and CORRECT!

 

Your username would suggest that people shouldn't listen to this advice. ;)

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BP - I wouldn't touch with a bargepole at the moment. Firstly they have to cap the oil leak and secondly BP have to potentially face some sort of legal action in the US so things could get a lot worse than they are now.

 

If they get the well sealed/sort out the oil leak and the legal repercussions are sorted with the company in reasonable shape then go for it, until then, unless it's money you could afford to lose then I'd leave alone.

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