Comments on: Should you Invest with BP? http://www.suburbandollar.com/2010/06/10/should-you-invest-with-bp/#utm_source=rss&utm_medium=rss&utm_campaign=should-you-invest-with-bp Where finance and reality meet Sat, 04 Feb 2012 21:54:17 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Rogerhttp://www.suburbandollar.com/2010/06/10/should-you-invest-with-bp/#comment-2774 Roger Mon, 21 Jun 2010 22:27:24 +0000 http://www.suburbandollar.com/?p=2465#comment-2774 Since this post was made BP has canceled the dividend. The legal liability they face is virtually unlimited as the amount of oil coming into the Gulf is many times higher than previously estimated, up to 60,000 barrels a day if I recall correctly, and the fine is up to $4300 a barrel. US public opinion is swinging hard against offshore drilling and there is movement in Congress to remove the cap on liabilities entirely (currently at $75 million). Rig insurance is going to rise dramatically (though BP self-insures). The US government may be willing to bankrupt BP to pay for this disaster. I don't think it's a normal "bounce" situation. And then there's the moral side. I'd rather invest in clean energy, myself. Since this post was made BP has canceled the dividend. The legal liability they face is virtually unlimited as the amount of oil coming into the Gulf is many times higher than previously estimated, up to 60,000 barrels a day if I recall correctly, and the fine is up to $4300 a barrel. US public opinion is swinging hard against offshore drilling and there is movement in Congress to remove the cap on liabilities entirely (currently at $75 million). Rig insurance is going to rise dramatically (though BP self-insures). The US government may be willing to bankrupt BP to pay for this disaster. I don’t think it’s a normal “bounce” situation. And then there’s the moral side. I’d rather invest in clean energy, myself.

]]> By: Austin @ Foreigner's Financeshttp://www.suburbandollar.com/2010/06/10/should-you-invest-with-bp/#comment-2771 Austin @ Foreigner's Finances Wed, 16 Jun 2010 13:05:06 +0000 http://www.suburbandollar.com/?p=2465#comment-2771 My grandpa is a long-time Exxon stock holder and all of his grandkids have some stock in their name through him and a college fund. I've been thinking a lot about this topic lately and it's not something I want to be morally involved with. I'm in no rush to sell, but in a couple of years I don't plan on having any of my portion in Exxon. It's too risky and I don't want to support these kind of actions. My grandpa is a long-time Exxon stock holder and all of his grandkids have some stock in their name through him and a college fund. I’ve been thinking a lot about this topic lately and it’s not something I want to be morally involved with. I’m in no rush to sell, but in a couple of years I don’t plan on having any of my portion in Exxon. It’s too risky and I don’t want to support these kind of actions.

]]> By: The Weakonomisthttp://www.suburbandollar.com/2010/06/10/should-you-invest-with-bp/#comment-2769 The Weakonomist Thu, 10 Jun 2010 13:47:15 +0000 http://www.suburbandollar.com/?p=2465#comment-2769 A discussion about whether or not to invest in a company without discussing revenue, profit, or growth potential with a target price based on a valuation model is not a discussion. This post makes the case for a good speculative move (which I agree with) but you can't say you're making an investment. A discussion about whether or not to invest in a company without discussing revenue, profit, or growth potential with a target price based on a valuation model is not a discussion. This post makes the case for a good speculative move (which I agree with) but you can’t say you’re making an investment.

]]> By: Money Beaglehttp://www.suburbandollar.com/2010/06/10/should-you-invest-with-bp/#comment-2768 Money Beagle Thu, 10 Jun 2010 12:04:44 +0000 http://www.suburbandollar.com/?p=2465#comment-2768 Until they get the oil leak contained, and even then, nobody really knows how much this is going to cost them. There's fixing it, there's clean up, there's all the claims for people that can't work. There's the hit on their goodwill, there will be an impact on sales. I know the falling price makes this look attractive, but I wouldn't go long on this stock at all. A day trade here and there perhaps, but even then, most day traders are probably shorting this turd. Until they get the oil leak contained, and even then, nobody really knows how much this is going to cost them. There’s fixing it, there’s clean up, there’s all the claims for people that can’t work. There’s the hit on their goodwill, there will be an impact on sales.

I know the falling price makes this look attractive, but I wouldn’t go long on this stock at all. A day trade here and there perhaps, but even then, most day traders are probably shorting this turd.

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