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Meet The Biggest Losers In Today's 14% BP Plunge
BP has now dropped 14% today alone, and who knows how many percent over the past month. Here are the biggest shareholder losers: #1: State Street, with 43.4 million shares has lost $260 million today, #2: Wellington, 34.8mm, $209 million, #3: Barrow Hanley, 16.7mm, $100mm; #4: Bank of America, 13.9mm, $83mm; and #5: State Farm, 13mm, $78 million. That's half a billion in losses for the top 5 holders today alone. And this list doesn't even include Anadarko, Transocean, or Halliburton. That's some serious dumb money margin calls coming at the end of trading today.
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Dick Cheney's taking a beating.
Buying a person to instituationalize corporate policy into government.
$38 million dollars.
Implimenting policy that's beneficial to you.
$637 million dollars.
Holding aces and still losing.
Priceless.
How low can BP go from now on?
ZERO!
ahhh can go to ZERO.
Somebody thinking that Citi was oversold back in December 2007 when it was around 30 asked me that same question about them. I told them it could go to zero. I think the same answer is reasonable here.
Call me a fool but if BP goes to 1$, I'M BUYING! :)
Right behind you...Harry Wanger style 'in with both fists' LOL
I will not buy until it is 10% below its March 9/2009 price. Its about 1 away from par with 09
I will not buy until it is 10% below its March 9/2009 price. Its about 1 away from par with 09
What an unbelievable genius mathematical strategy! March 09 was when the Fed Reserve stepped in and backstopped banks and shadow banking with 3.0T+ and if that doesn't occur when BP falls 10% below its 3/09 price despite the fact that today's estimated clean up will cost them 40B (FOURTY BILLION), wiping out 3 years of profits it will be 2014 before they become profitable again (assuming of course US citizens don't boycott them out of business = $0.
If they fall 10% below March 09 you might be eating my shorts. = )
Not only margin calls. FOAD Mark Haines reported this morning that mutual fund cash levels are at record lows. Any redemptions can only be met through liquidations. Any more "corrections" will, therefore, induce even more selling. And you wonder why the PPT seems to be working overtime??
Yeah leverage is all fun and games paper gaining on the way up..not so much on the way down. A fresh market leg down will really put a freeze on new hires. I did not think these companies can get any trimmer but I suppose we are about to find out especially with the city and state firings going into high gear this year.
BP can't get lower than this, no paintball guns.
http://edition.cnn.com/2010/WORLD/meast/06/01/gaza.raid.eyewitnesses/
Hanin Zoabi, a member of the Israeli parliament, was on board the Miva Marmara, the ship that was the scene of a confrontation between activists and Israeli soldiers. That clash left at least nine people dead.
The Israeli Navy fired on the ships five minutes before commandos descended from ropes that dangled from helicopters, Zoabi said during a press conference in Nazareth, Israel. She said passengers on board the ship were unarmed.
Israel has said its forces found several weapons among the passengers on the Miva Marmara. Israel also has said that its forces started shooting after passengers on the Miva Marmara assaulted them.
Zoabi said the military operation lasted about an hour and that she saw five dead bodies in that time.
Yeah,uummmm,off topic.
http://lifeinisrael.blogspot.com/2009/03/mk-zoabi-oenly-hostile-to-israe...
http://www.jpost.com/Israel/Article.aspx?id=177162
**Nice try Gully
The market cannot rally while this leak continues it is an economy killer. You can see many have too much faith in the Fed and large banks in their ability to keep this afloat because they keep waiting for the algo markup for better prices but the distribution waves re closing in on them. We are going to go into 9000 territory with authority shortly.
Well played, Lloyd. Decreasing the shares held by 5m...
i might be buying some BP if it gets much lower, as it becomes really cheap another major may go for it.
It also might serve the interests of the shareholders if it becomesa US firm since its wrecked huge swathes of coast. I reckon ultimately, a US gov will come down harder on a UK business.
Are you serious? A buyout won't eliminate legal risk. This is dead money for years to come.
BP is Amoco, a decidedly American corporation. Yes, I know they have a parent company in the UK, but we're talking Amoco as in Standard Oil here. And the US government owns a 20% royalty in all the oil that comes in offshore, 1 out of every 5 barrels leaking out of the earth belongs to the US taxpayer. So why is BP producing it? Because the US government has no fundamental expertise in how to turn on a light bulb, let alone how to get oil out of the earth 5000 feet under the sea.
I might be buying some BP if it gets much lower, as it becomes really cheap another major may go for it
Pretend you are a major. Think like a major. Think like Jamie Dimon scooping up WAMU assets at $2/share, not that BAC whats-his-name-long-gone-I-really forgot-his-name who purchased Countrywide for 400% of its .22 cents market value price.
You have to wait until there is blood in the streets. That means you have to wait until every executive in BP comes to the chilling conclusion that he is toast and there is no longer any future with the Co, sells all his "vested" stock as quickly as legally permissible and you start hearing rumors that BP execs gift/donate shares to others just to liquidate even faster (unless that is already happening). BP is sunk. What sucks is realizing it now 45 days after the leak. F$%$ing hindsight sucks!!!!!
If I was a major I would take it over when all shareholders are out and the bond holders will GLADLY take a 30% haircut (a favor to bondholders), AND all the litigation is SETTLED.
Think like a small business owner if you want to think like a major. Would you buy 1 gas station locally if it had even 1 lawsuit that would wipe out profits for the next 3 years? Would you put a down payment on a business like that? That is what you are doing buying Common stock. Why do you think they call it common? Its for Commoners. Seriously, I used to do commercial financing. Gas stations need Environmental reports (costing thousands) before any lender would make a loan (institutional or private) to a gas station (or any environmentally sensitive property).
Oil in the ground, a dirty stack of tires in the back, a crack in a tank and there is NO loan. This GoM leak is knocking out the ECOSYSTEM, it is a global problem. Don't be surprised if the U.S. Gov't starts putting Americans on oil rations expecting that each US household figure out how to get by on 1/2 of our regular consumption and oil drops DOWN to $50/bbl - wiping out margins for every MAJOR. MAJORS become like China corps, operating on 2% margins.
GOLD, SILVER and ART are probably the safest wealth preservers for the next 10 years.
In the interest of full disclosure I closed my acct today. I'm out. The next time I get into the stock market I am issuing IPO shares myself in a co I will build.
Fing stock market I
I
00 I 00
I was kinda hoping to see AIG on that list, only to absolutely confirm the corruption of our system.
APC sent to Davy Jones' locker....BP may be "too big to fail"...not so APC???
Just wait until mutual fund investors furious with BP insist that funds divest of the name, or when Bank of America shareholders tell them to get out of the name. Think South Africa and Exxon at various times. The name can be further villified with impact on who is willing to hold.
Buffet or Soros coming in to buy yet?
I can't believe I found shares to short today. This looks like a no-brainer...
The time to short was Apr 20th. It may tick a bit lower, but they are not going to put BP out of business and memory is short. Bayer comes to mind.....made a killing buying the selloff. Think to do the same here.
Famous last words...
It's always good for a laugh to watch the ever-changing group of dopes on the balcony of the exchange floor clap as the market swirls down the toilet.
It's always good for a laugh to watch the ever-changing group of dopes on the balcony of the exchange floor clap as the market swirls down the toilet.
Seriously. One would think they are auditioning for the sequel of Eyes Wide Shut.
Its doubtful that State Street and Bank of America actually own those shares. Far more likely those shares are held in trust for others, but STT and BAC file.
Yes, not to mention that STT runs 88 ETF's with about $150 billion in combined assets. Bound to be a fair amount of BP stock in there somewhere.
My thoughts exactly.
Biggest losers would be some mom and pop type investors who's 401(k) fund has BP. Firms like STT, BAC, GS etc. would never be unhedged. They'd more likely be buying CDS like crazy to give the appearance of more panic.
Lots of UK pension funds own this too for the dividend, so they'll be the poor sods who'll be affected.
I love the smell of long-only nuts roasting.
It's a *good* day to be short materials.
Gold bitchez!
In my experience with situations like this it's best to pretend that BP's stock doesn't exist.
Too many sharks in those waters.
Why is it that Bank of America is on EVERY SINGLE LOSER'S LIST ever published??
:)
Stupid is as stupid does. [/mama sez]
Anybody contemplating buying BP at any price need only look up the history of Manville corp(Asbestos) to understand what massive litigation does to you.
What are the odds of these flash crash sell offs happening daily? I say good odds.
Looks like they may have to sell their AAPL stock. No wonder the upgrade today.
I can't believe State Farm is doing badly. I thought low hanging fruit was good farming.
http://www.google.com/finance?q=NYSE:BPT this stock has been an inflation gauge before the whole oil spill humbug began. does BP have the power to liquidate it to pay for the damages or is it a separate entity?
So we see the risk of a very large holding in stock, without any way to control risk based decisions. Heavy exposure in one holding has a risk multiplier unless you have controlling interest. If you have large holdings, but not controlling interest, you must increase oversight of the account. Because you cannot afford a major drop in price without some liquidation of your position over time.
So State Street ends today with an investment of 1.58 Billion Dollars. This amount should warrent a team of people watching company operations, right! I wonder, how many State Street people were really watching BP's operations in the Gulf? Here are my findings after 2.5 days of research.
----------
My accounts are not in Energy, but as a side project I did take a few days to look at the real dangers in deep sea drilling. The technology is really amazing, but the risks are huge as to a danger of a spill due to the depths and instant exposure to the ecosystem upon spillage. I beleive that spilling oil at the sea floor is many times more desctructive than a spill on the surface to the ocean ecosystem. Especially the cold deep waters where the food chain begins. If you destroy the high nutrient production in the deep waters, the complete ecosystem could collapse.
Perhaps a ZH Marine Biologist could comment?
Anyway, back to the technology.
I was really interested in how they controlled the well head as to the safe guards and was really shocked by the vulnerability of the design. There was no backup containment plan if the well head was damaged, like what is traditionally seen on a well on land. Granted there is no fire hazard, but I was much more concerned with uncontrolled flow. Basically at the ocean depths where the drilling takes place, you cannot use traditional containment solutions that have been proven on land. At these deep water depths it is a different universe. The crushing pressure of the water at these depths makes it about as accessible as outer space.
So I was keen on seeing what the backup plan was in place for a catastrophic failure of the well head, and to my surprise, there was no backup plan if all else failed.
No huge sliding containment chamber, no explosive well seal or slug, no emergency secondary baried well head valve. Nothing.
I was completely shocked by what I found.
I wonder if State Street's team looked into any such risks?
Mark Beck
Honestly if this is true I can't hardly believe it. No risk management at all? WTF?
"Perhaps a ZH Marine Biologist could comment?"
I tried to become a marine biologists but after basic training people kept shooting at me and it was too hard to study.
Just an observation: Tyler's Bloomberg list just refers to US shareholders of BP ADRs as per the large fund managers' 13F reports, which were filed within 45 days of the end of March 2010. So that information is at least 6 weeks old.
There were 120 million BP ADRs traded traded today, and the average daily volumes for BP ADRs have been on the order of 30-40 million for the last 30 days.
Consequently I would guess that those fund managers' exposure to BP is now likely to be far lower than Tyler's list seems to imply.
Pffft... everybody talking about shorting something in which the last piece of bad news crossed the wire over the weekend.
I bought a (teensy - 200 share) passel of BP today - just for a beer-money account, with a view that since all the nuffnuffs are jumping off the rig, the canteen will be unguarded and full of food and I can walk on in and lunch off their stupidity.
Where's the catalyst for the next downleg? You think that the Yank administration is going to give BP anything more than a slap on the wrist?
So anyhooooo... I'm long 200 BP from an entry price of 433 (had a crack at catching a falling knife shortly after the open). Currently underwater by 1%: and my exit order is in for 474 - in other words, it's a bounce-only play just to take some money off late-entry dumbass folk who trade yesterday's newspapers. And I'm not even being greedy - just looking to pocket enough to buy 1 round of drinks and the right to say "There's the trade receipt, lads... I told you I would."
Cheerio
GT
What a dumb posting. Who cares about your measley 200 sh buy.
Really? That's your contribution - that my order wasn't big enough? Freud would have a field day with that.
What would you have said if I didn't declare the size of my order, or if it had been a big (dare I say throbbing) parcel?
Or are you saying that I'm on the wrong side of the trade? Because that's a conversation we can have.
Tell you what - if size matters to you, then you go out and sell 2MM BP so that you can feel the weight of your plonker behind your bet, and we'll see how things pan out (because now you just know I am going to remind you when my exit is hit).
Srsly. Without wanting to get too ad hominem, I notice that your entire schtick is pretending that you have the wherewithal to critique the contributions of folks who put across a point of view - while never being a 'first mover' and being a self confessed 'non finance guy'.
That's a psychotype I've never understood: it's intellectually parasitic but I guess there's safety in it.
Cheerio
GT
What a dumb posting. Who cares about your measley 200 sh buy.
Seriously, if you are going to play don't be a rabbit lurking for some lettuce. Kill or be killed like a lion with 10-20k shares. Live a little if you want some exhiliaration or may you live forever.
Spartans! What is YOUR profession?!
Methinks someone who boasts going long BP at today's open, shouldn't be calling others stupid
And nuffnuffs? Really, Geoff, thats something between you and your consenting Public School mate
...TMI dude
Some day both oil and huge mutual fund firms will be history. Hopefully some day soon.
Why anybody would plonk their money into a large non-index mutual fund is beyond me: the larger the fund, the lower the ability to manoeuvre, and the harder it is to find candidate stocks that can be purchased in size enough to furnish the required portfolio tilts to add alpha.
Back in the olden olden days when I was a mutual fund analyst (rating process and outcomes), I saw this a lot: short-term performance led to fund inflows, which turned speedboats into supertankers. In order to try to continue to add alpha, managers then had to buy size in stocks that then turned out to be just a little too illiquid when the poo hit the aircon.
And let's be frank - people who actively manage OPM make the same dumbass herd moves as people who punt their own money. They capitulate at lows and buy at highs (some of that is forced on them - they get huge redemptions near lows, and huge inflows near highs: but some of it is their 'style' problems, not wanting to have a dog in their reported results, even if the dog has been in the portfolio up until balance date).
Oil companies will go away once we figure out how to do smart things to tap into relatively-abundant energy that we are awash in.
Mutual fund companies will go away once the average investor understands the concept of alpha, and learn to look past 3-month performance. [Oops... that means 'never'].
Cheerio
GT
Keep in mind, when boycotting occurred against Hugo's Citgo gas, the other stations such as Chevrons simply took delivery of this same oil and sold it to J. Q. Public. Even if you thought you weren't supporting Chevez, most likely you were.
I'd imagine they'll change their name such as:
Ally Bank formerly GMAC
Altria formerly Phillip Morris
Accenture formerly Anderson Consulting
AirTrans formerly know as ValueJet
I'm sure others can think of some new names....