Is this a good time to purchase stock in BP? The well cap in the Gulf to stop the gusher that has become the Deepwater Horizon has been installed but is still in the testing phase. Years of environmental cleanup remain to completely remedy the situation. However, BP is a corporate giant worth billions. Aren’t they likely to remain standing in the end? An argument in defense of the purchase is support of the cleanup which will total billions. Also, any holder of BP stock is in a position to pressure BP to become the good corporate citizen that it has not been in the past. BP stock traded at a high of $62.68, a low of $26.75 and is now trading at $38.92. Based on the numbers is this the optimal time to invest?
I think this is a great time to purchase stock in BP! I know many people are questioning their ethics, but does that mean that we should not capitalize and make a ton of money with this venture? Look, the market is at an all time low and we have the opportunity to really build a future for our children. I think it would be ludacris for us not to purchase BP at this time.
Any purchase of stock of a volatile company is always risky…if it weren’t then everyone would purchase and there would be no need to have this discussion. Simply stated, smart and talented investors gamble with risky stock all the time. The true test is to observe a particular company’s profit potential, which is what we always do. Is the company sound? What’s the recent trading activity for that company or its overall trading history? Those are just some of the indicators that make purchasing stock worth while, and investing in BP stock under the current climate will prove to be beneficial in the long run. The fact remains is that BP stock, while once considered fairly expensive is now being sold at a much cheaper price. In this regard, BP’s share at its all-time high sold at $62.68. Its all-time low was $26.00. Yesterday it closed at $38.92. What more do you want??? This is a no brainer, people! You’re looking for guarantees then don’t buy stocks! I get it!! I comprehend the concerns!! BP is not held in high regards these days….the BP executives are loathed and abhorred (maybe not as much as Mel Gibson these days…okay, okay, that’s another topic)…they’re exposed to years of potential litigation, as well as insurmountable clean-up costs…everyone wonders if they will ultimately file bankruptcy…the list goes on and on! However, none of that alters the fact that BP is a multi-billion dollar company. I read once that they made a $6 billion profit in one quarter. Do you know what that means? It means that this disaster, as horrific as it has been will not cripple this company to debilitating proportions. It’s not going to happen. The interesting question, I believe, is where do people stand morally? What about those who feel that they can’t support or associate themselves with a company that has caused such catastrophic results in the Gulf and initially manifested nothing but blatant disregard? Didn’t BP CEO, initially classify the spill as “nothing significant” or something like that? Does that not matter? Are we to put that aside and only focus on the financial aspect of this situation? Is the concern only about profit and gains? Uh, yeah!!! That’s why we have the stock market. This is a business and the bottom line is that none of the foregoing is going to prevent investors from investing in BP. Why shouldn’t we get a piece of the action? Maybe one can argue it’s still too early to invest? That we should we wait to see the results of the containment cap? I guess that’s a valid position. I understand that the containment cap is still in the testing stage. And, yes, no one is prepared to breathe a sigh of relief – not even our President. And, yes, the stock can plummet again, but there’s always that possibility. That’s why buying stock is considered risky. But I think that’s a remote possibility and the stock will actually soar and I’m not going to miss out. Should you use up your life savings or child’s college tuition and buy up as much stock as possible? Probably not, but maybe you can forgo those Jimmy Choos this month. At the end of the day, don’t let me twist your arm. While you’re busy wallowing in your ambivalence and skepticism, I’ll gladly purchase your shares – thank you. More for me! The Cap will work. It has to. So you know what I say “buy as many shares as you can afford and in 2 years or 3, maybe more, you’ll be dancing on the ceiling…with plenty more Jimmy Choos!”
To Buy or Not to Buy seems to be the News Buzz.
PRLog (Press Release) – Jul 16, 2010 – Five model managers from Covestor respond. Is BP (British Petroleum) a Buy or Sell? (http://covestor.com).
I like to hold on to the opinions of the following about BP:
“…. a bullish long-term oil price outlook, and you have a stock that could provide a nice return over the next year with little risk from this point forward”.
“….. If an investor is willing to wait a few years, owning BP is a strategic investment based on the continued growth of the worldwide demand for oil, led by the U.S., China, India, Russia, and any country with large energy needs. As such, I believe the share price is undervalued and will probably recover.”
The stock market is a gamble, but long term we will end up on the winning side with stock.
Yes, investing is a huge risk and investing in BP at this time may not be a bad decision, however, I am still very leery about investing in their stock at this time. I think that the price per share will become lower than the $38.00 that it is trading at right now. I would wait a while longer. The containment of the cap is still in the testing stage, and as of yesterday, I heard there was still some leakage. Also, the article about BP being investigated as a lobbyist to have the terrorist responsible for the airplane crash over Lockerbie will probably affect the company’s credibility even more and I think that will cause the price of their stock to drop some more.
As current conditions have been reported, BP appears to have been irresponsible in dealing with such a massive oil spill in the gulf, and especially when the CEO at the height of this spill was on a boat sailing while so many people who depend on their livelihood were and still are being affected, makes me believe that there will continue to be significant consequences. To me that means that the stock will drop some more.
On the other side of the coin, oil is an important resource and I do think eventually the stock will recover. I think waiting another week or so would be a good time to make the decision to buy their stock.
It gives me great pleasure to announce that 75 percent of the oil has either been captured, been burned off, evaporated or broken down in the Gulf , according to a report to be released Wednesday by scientists with the Interior Department and National Oceanic and Atmospheric Administration. Therefore I believe that we made the right decision in purchasing BP Shares!