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BP Stock Plunges In Local Trading, Hits -8%, Recoups Some Losses
It is going to be an ugly day for BP longs. BP stock has crashed in early trading in London, dropping as much as 8% at one point to 296p. It has subsequently recouped some of the losses and last was off "only" 4%. Reasons for the plunge include new bankruptcy rumors, concerns about hurricanes in the Gulf region (that took a while), and general worries about "fat tail" events as a trader told us.
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Do you think if we had a more business friendly president that the markets would be as concerned about a BP bankruptcy?
Wouldn't the thing to do to maximize payment to injured parties be to keep BP afloat as a going concern and just take a big chunk of their profits for many years?
If THIS PRESIDENT gets any more "business friendly" then they may as well move the White House to Wall Street
ZH is a site with intelligent posters - lets be honest..wall st is based on paper..co's like BP actually make products we use..Obuma is killing the real economy while feeding wall st until it chokes on the paper.
Lest we think this is partisen, Bush, Clinton, Bush..have done the same by our free trade self destruction..and the wall st corruption
got BP Leaps?
Well said but you should have clarified for the lemmings:
"business friendly" = wall street, big oil, big pharma & defense contractors
everyone else......not so much
"...and general worries about "fat tail" events as a trader told us."
A trader which probably still uses Gaussian curves to model his risks. Cauchy all the way!!
Why buy gold when you can buy puts in BP?
When BP hits 1$, I'm buying!
Not me!
I'm averaging down all the way, as madhedgefundmanager suggested I do.
27.17 -1.57 (-5.46%) Jun 25 10:48am ET
You mean building your position?
Hope no one notices gold back to 1250 and silver hugging 18.80. Almost like opex week never happened.
If the 4th most profitable company in the world was going to go bankrupt because of a liability in their asset chain they WOULD have already nuked it.
**edit**
Unless this is an engineered attempt at using bankruptcy to become the #1 most profitable company in the world.
That is why I requested to team to drill deep into the relationships involved in the well, platform, and processors of the crude. Ignored.
BP is not that profitable. The return on sales for oil producers is relatively low. They have to have monster sales in order to get these profit headlines. But as far as return? Microsoft or any number of other companies is astoundingly more profitable.
My kids lemonade stand last summer threw off better margins than Microsoft, but at the end of the day they still only had $32 in profit.
I agree with you about using margin to assess profitability, but the restitution claims against BP are going to be paid in $, not %. In this case, margins are irrelevant.
I told you to get short before it broke thru support @29.
The BP oil spill story keeps getting worse and worse. Everyday there is another headline. Recently I read they were burning sea turtles. The jury is still out, but this may turn out to be a textbook case of not buying a falling knife. Just a few weeks ago, there were the fake stories of how BP was a takeover target. I'm sure various funds fed this to CNBC so they could sell their shares.
Madhedgefundtrader seen flying coach.
+1. More likely riding a Greyhound bus. They let you on even if you lose your shirt.
I was just thinking the same thing. His post this last week, was so incorrect as to not even be considered wrong. Just wait until this upcoming hurricane pushes all that oil that they have aerosolizing back to the nice pretty inland lakes ...
__
You guys just need to have faith and continue to average down just as he suggested because, as he said, you can't time a market bottom.
27.17 -1.57 (-5.46%) Jun 25 10:48am ETHey, at least he's got balls enough to publish his trades.
It's easy to watch the battle from your cave until it's safe enough to come out and stab the survivors.
Odds may still favor (slightly) BP as an ongoing concern, but with the vultures out in full flock, the possibility of uncovering some new, unflattering information on the company's exploits---anything from bribery to more slipshod safety measures---is increasing. On top of that, with the 4th of July coming up, the US no doubt will be regaled with many news stories on the ruined holidays of the children in the Florida panhandle and the western Florida coast. The masses, after seeing that, will demand blood, which politicians in this election year will be wont to give.
This fire, as well as the one between the US and UK governments, is far from being contained.
if they succesfully cap the well in Aug. on the first try, it's a buy (then). otherwise, forget about it.
hayward's raisins are shrinking..
unfortunately for the US the weather cant be manipulated
http://www.nhc.noaa.gov/
Tyler, i'm wondering how many algo's read ZH, and talking about whale tails, that chart looks like a fish out of water, a blow fish to be exact!
talking about fish and bp...
http://www.bloomberg.com/news/2010-06-24/gulf-oil-spill-becomes-ticking-time-bomb-for-sushi-staple-bluefin-tuna.html
The shameless evironmental groups will stop at nothing to push their agendas.
There are several bluefin spawning grounds.
Right now you can walk on the bluefin off the Massachusetts coast.
nm
While the the fat tail exists, BP is spending 35mm/day on the spill and while earning 50mm/day on its general operations. The company has some commerical paper due but that is very modest and with the dividend cut, liquiidity is not a short term issue. Assets sales, if needed, take liquidity off the table. So a quick financial disaster does not exist.
One effect pounding the stock this week are forced sellers trying to get BP off the books before quarter end. Further, many value buyer are waiting until next week, post july 1, to wade in because they too do not want to have to explain this equity after a june 30 disclosure.
While the stock could go lower on well issues and more hysteria, look for selling to slow and buyers to step in on July 1. If you have an inkling, step in on the last trading day of the month.
If the well is capped, the stock will be +25% that day.
And if the relief well operation fails, how quickly to ZERO?
God damn it, that's not all! Because if one of those things gets down here then that will be all! Then all this - this bullshit that you think is so important, you can just kiss all that goodbye!
June 25, 2010 - 12:26 PM EDT Print Email Article Font Down Font Up Charts close Email this News Article Your Name Your Email Friend's Name Friend's Email Receive Copy: yes BP 27.3226 -1.4174 Today 5d 1m 3m 1y 5y 10y Stull, Stull & Brody Announces Investigation on Behalf of Participants and Beneficiaries of the BP Employee Savings Plan Stull, Stull & Brody Announces Investigation on Behalf of Participants and Beneficiaries of the BP Employee Savings Plan Jun. 25, 2010 (Business Wire) -- Attorney Advertising. Stull, Stull & Brody announced today that it has commenced an investigation relating to the 401(k) defined contribution retirement plans of BP Corporation North America Inc. (hereinafter “BP” or the “Company”), an indirect wholly owned subsidiary of BP p.l.c. (“BP”) (NYSE: BP). Among other things, Stull, Stull & Brody is investigating whether fiduciaries of the BP 401(k) plan may have violated the Employee Retirement Income Security Act of 1974 (“ERISA”) by continuing to offer and maintain the BP Stock Fund as a BP Employee Savings Plan investment option when it was imprudent to do so, and by failing to disclose true and accurate risks regarding the Deepwater Horizon rig to the 401(k) plan participants. If you held BP stock in an individual account under any of the Company’s 401(k) plans at any time since January 1, 20010 you may, if you wish, consult with a representative of Stull, Stull & Brody at no cost or obligation. The contact information for Stull, Stull & Brody is as follows: Email: ssbny@aol.com Fax: (212) 490-2022 Toll Free Number: 1-800-337-4983 (Michael J. Klein, Esq.) Mail: Stull, Stull & Brody 6 East 45th Street New York, NY 10017 Stull, Stull & Brody has extensive experience in protecting the rights of 401(k) plan participants and beneficiaries and shareholders of public companies. Stull, Stull & Brody is presently representing classes of 401(k) plan participants in many class action cases throughout the country. Stull, Stull & Brody maintains offices in New York and Los Angeles. Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome. Source: Business Wire (June 25, 2010 - 12:26 PM EDT) News by QuoteMedia