BP Shares
Anyone tempted?
02 June 2010, 03:49 PM
#3
My brother works for them and he just cashed in some the other week for £6 odds and is due to start another share scheme so he is happy .
On the other hand my old man retired from BP ten years ago but still has a lot of shares as a nest egg and he is not so happy.
On the other hand my old man retired from BP ten years ago but still has a lot of shares as a nest egg and he is not so happy.
02 June 2010, 03:54 PM
#4
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I'd wait another week.
Or you should have started shorting a while back
Or you should have started shorting a while back
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03 June 2010, 12:29 AM
#11
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They have a lot of very valuable assets...
...and one heck of an uncapped (excuse the pun) liability!! It might lead to a split with a good co/bad co being created.
Depends how long it takes to cap the well.
Politically whatever Obama thinks in private - his public persona will be one that has to take BP for everything he can.
...and one heck of an uncapped (excuse the pun) liability!! It might lead to a split with a good co/bad co being created.
Depends how long it takes to cap the well.
Politically whatever Obama thinks in private - his public persona will be one that has to take BP for everything he can.
03 June 2010, 12:40 AM
#12
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Yours when the first news broke...
Wouldn't get involved now as it's priced in...but eyes and ears on this for a cheeky bid...
Wouldn't get involved now as it's priced in...but eyes and ears on this for a cheeky bid...
03 June 2010, 10:08 AM
#14
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I was tempted a few days back, but now I'm not so sure.
Always a gamble in this sort of situation. I got my fingers burnt when I bought Northern Rock low, but then saw almost a 500% gain on RBS so it's win some lose some...
Always a gamble in this sort of situation. I got my fingers burnt when I bought Northern Rock low, but then saw almost a 500% gain on RBS so it's win some lose some...
03 June 2010, 03:37 PM
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04 June 2010, 03:30 PM
#18
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I would be very grateful for an explanation as you promised above.
Les
04 June 2010, 03:51 PM
#19
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07 June 2010, 04:46 AM
#20
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Could you be tempted back in lower, John, or are you too concerned about the level of risk involved?
I know this wasn't aimed at me but that's not a bad call...I think anyone trying to short now is at greater risk, but it might me more prudent to keep eyes peeled and ear to the ground.
If anything there could be a takeover, the vultures are circling....so i'd think very carefully about going short (unless there's a global boycott over BP instigated by the tree-huggers....but let's be honest, we need oil and if anything, BP could reduce their pump prices to keep them afloat). The amount risk involved going short at the lows is like holding a posi over the non-farms in my eyes.
Of course, this is only my view...
Last edited by Captain Carbon; 07 June 2010 at 04:49 AM.
07 June 2010, 11:40 AM
#21
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I'm concerned about the risk. It is OK chasing dividends, but they may be under threat in future and the drop in share price has already wiped out many dividend payments.
07 June 2010, 11:44 AM
#22
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Yes, a lot of the discount in price is due to wild speculation about the future earning potential of the company. Some people even questioning whether it can survive, which I think is ridiculous. Even the higher end of cost estimates could easily be paid easily out of profit. I think it's quite likely that any costs to be paid will be spread over many years too, which again takes any real pressure off.
A lack of divi short-term isn't such an issue when there is the potential to make 50% capital gains... which I believe there may be, in 5 years at the most. Probably a lot sooner if past market action is anything to go by. About 1% of the media bull that's being banded about will probably become a reality.
A lack of divi short-term isn't such an issue when there is the potential to make 50% capital gains... which I believe there may be, in 5 years at the most. Probably a lot sooner if past market action is anything to go by. About 1% of the media bull that's being banded about will probably become a reality.
07 June 2010, 11:57 AM
#24
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Fair point. My thinking was just that at these levels the current dividend yield is very high. Even if it is cancelled for a year or two and then reinstated at half, it would still be a fairly decent yield on an investment made at around £4. Not to mention that(as I just said in reply to Captain Carbon) I think profitability would really have to be hit in the long-term not to see at least £6 a share at some point in varying market conditions in the future.
07 June 2010, 01:50 PM
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10 June 2010, 01:19 PM
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