BP is a good buy

[B_starinvestor]

I posted this in politics, because the controversy and political windfall it has brought about are exactly what makes BP a potentially outstanding investment.

Due to the blown oil well, the loss of goodwill, and the overall outrage directed at BP, the stock has fallen to $37 per share from a high of $62.

They are still earning $4 billion per quarter in profit.

Dividend yield is around 9%.

Current P/E is 5 to 1 and they are growing earnings 20% per year.

Absurd.

If they pay $4 billion as a result of this catastrophe, its only 1 quarter of earnings.

If that stock gets any closer to $30, its a heckuva buy.

The catastrophe is horrible, disgusting and heinous.

I'm pretty sure BP didn't do it on purpose, but still - shame on them. The silver lining is that you can now profit on this disaster.

 

[D_Alec_Baldtwins]

Right up to the point where they spin off anything profitable into new corporate entities and then bankrupt the old one?

 

[FRE]

Do you recommend that I call Merrill Lynch and direct them to do a reallocation?

 

[B_starinvestor]

Do you recommend that I call Merrill Lynch and direct them to do a reallocation?

I recommend that you transfer the Merrill account to an independent advisory firm and then scoop up some BP.

 

[mitchymo]

I'm pretty sure BP didn't do it on purpose, but still - shame on them. The silver lining is that you can now profit on this disaster.

Conspiracy theory view:- rich elite see way to profit on accident by making a big deal about it all being BP's fault as opposed to any other company so they can buy cheap shares or whatever.

Its like with war, bankers love a good war cos it means bankrolling governments. Wherever there is catastrophe there are vultures.

 

[B_starinvestor]

Its like with war, bankers love a good war cos it means bankrolling governments. Wherever there is catastrophe there are vultures.

I prefer prudent opportunists.

 

[Stretch]

The silver lining is that you can now profit on this disaster.

I believe I just heard the sound of Dick Cheney dropping to his knees...mouth wide open and ready to pay homage to you

 

[mitchymo]

I prefer prudent opportunists.

same difference tho

 

[Industrialsize]

I'm currently BOYCOTTING BP.

 

[B_starinvestor]

I'm currently BOYCOTTING BP.

A lot of people are. And I'm not saying that's wrong.

But that is one of the reasons the stock is getting pushed down artificially low.

Their market cap has dropped $50 billion from the stock's 52 week high.

That's a big drop.

 

[mitchymo]

Can someone please tell me who BP are drilling the oil on behalf? Its deep sea drilling right? Is that within US waters?

 

[B_starinvestor]

Can someone please tell me who BP are drilling the oil on behalf? Its deep sea drilling right? Is that within US waters?

A big part of their business is exploration.

The offshore rig was actually owned by Transocean Offshore - a company that does offshore drilling, but the rig was leased by BP.

Off the coast of Louisiana.

 

[mitchymo]

A big part of their business is exploration.

The offshore rig was actually owned by Transocean Offshore - a company that does offshore drilling, but the rig was leased by BP.

Off the coast of Louisiana.

Is Transocean Offshore an american company?

Do we know how long it has been leased to BP?

 

[Bbucko]

I prefer prudent opportunists.

Opportunist is still a pejorative if it still means anything at all:

Merriam-Webster:

Main Entry: op·por·tun·ism
Pronunciation: \-ˈtü-ˌni-zəm, -ˈtyü-\
Function: noun
Date: 1870
: the art, policy, or practice of taking advantage of opportunities or circumstances often with little regard for principles or consequences

Wikipedia:

Opportunism is the conscious policy and practice of taking selfish advantage of circumstances, with little regard for principles.[1] Opportunism or "opportunistic behavior" is an important concept in such fields as transaction cost economics, evolutionary biology, game theory, ethics, psychology, sociology and politics.

Free Dictionary by Farlex:

One who takes advantage of any opportunity to achieve an end, often with no regard for principles or consequences.

I especially like the list of synonyms:

Noun:
backscratcher - someone who is willing to trade favors or services for mutual advantage
bottom feeder - an opportunist who profits from the misfortunes of others
carpetbagger - an outsider who seeks power or success presumptuously; "after the Civil War the carpetbaggers from the north tried to take over the south"
wheeler dealer, hustler, operator - a shrewd or unscrupulous person who knows how to circumvent difficulties
selfish person - a person who is unusually selfish
timeserver - one who conforms to current ways and opinions for personal advantage

 

[B_VinylBoy]

The silver lining is that you can now profit on this disaster.

Not everyone are sleazy, money grubbing opportunists. I'll stick with computers and music. But thanks for the "investment advice".

 

[B_starinvestor]

Is Transocean Offshore an american company?

Do we know how long it has been leased to BP?

yes, Transocean is American. They have leases with all the major oil companies. Transocean is the 800 lb gorilla of offshore drilling.

 

[houtx48]

Do we know how long it has been leased to BP?.................Lease is up it that rig it is in the bottom of the Gulf of Mexico. When a company develops a field they will often use the same rig to drill a number of wells.

 

[slurper_la]

...The silver lining is that you can now profit on this disaster.

^ That, in a nutshell is what's wrong with America today!

 

[mitchymo]

Surely Transocean has some responsibility? I mean, if it was their rig to lease, have they suffered any negative equity from this disaster?

 

[B_talltpaguy]

Is this sort of thread permissible here? On any forum I've ever been a member of, soliciting people to buy anything is a big no-no.

And btw, if you think BP is cheap now, give it a few months, when the oil is washing up all over Florida and is in the Gulf Stream. I say it eventually goes below $30, maybe even $25... Remember, there are criminal investigations now in process, and if BP is found guilty of anything, you're going to see a shitstorm over them being pushed out of the US like hasn't been seen since the Dubai Ports World controversy.