BP is getting K I L L E D

[Mega]

Matt Simmons was on CNBC & said he could see BP going Chapter 11......the clueless morons laught at him..............

This is Obama's 3 Mile island

Mike

[Sharky]

Re: BP is getting K I L L E D

"The time to buy is when there's blood in the streets." -- Baron Rothschild.

[hayekvindicated]

Re: BP is getting K I L L E D

"The time to buy is when there's blood in the streets." -- Baron Rothschild.

Or oil in the water.

There are also times when it is better to stay indoors when there is blood on the streets.

[Jay]

Re: BP is getting K I L L E D

"The time to buy is when there's blood in the streets." -- Baron Rothschild.

It is an awfully big company to let fail. There will be a lot of pressure to bail them out if need be, especially in the UK. It's not like the bailout precedent hasn't been set recently. The question is what the equity and debt terms look like.

[hayekvindicated]

Re: BP is getting K I L L E D

It is an awfully big company to let fail. There will be a lot of pressure to bail them out if need be, especially in the UK. It's not like the bailout precedent hasn't been set recently. The question is what the equity and debt terms look like.

BP's first quarter profits in 2010 were $5.5 BILLION. Even if the total cost of cleanup is around $20 Billion, this is a year's profits at the most. The company is printing cash. If the oil price were to go up a lot because of a shutdown of offshore oil production, you will probably see that number go up a LOT more.

So the idea that this is going to sink BP sounds to me like a lot of nonsense.

Also, were BP asked to pay $20 Billion, this would occur over several years if not decades. This won't hit their cash flow tomorrow. There will be an army of lawyers and this will go through the courts, through appeals and so on.

By way of comparison, Exxon paid $500 million for the Valdez disaster - and this was the sum settled upon in 2008. If this is 20 times bigger than Valdez (which it isn't yet), you're looking at $10 Billion. That's two quarters worth of profit.

This is not to say that the company is a buy because it could go a lot lower. But if you don't care about short term price movements and want a long term dividend earning stock, you could start looking at buying it.

For the record, I dont own BP stocks.

[Rajiv]

Re: BP is getting K I L L E D

This is Obama's 3 Mile island

Lloyd's predicts BP disaster will prove oil industry's Three Mile Island

Insurance giant warns environmental risks will only increase unless action is taken to curb reliance on fossil fuels

Over reliance on fossil fuels is driving companies to take unnecessary environmental risks as typified by the recent oil disaster in the Gulf Of Mexico.

That is the conclusion of a major new report from insurance giant Lloyd's and UK think tank Chatham House, which argues that a rapid shift towards low carbon energy sources represents the only way of tackling the energy industry's soaring risk profile.

The report, titled Sustainable Energy Security: Strategic Risks and Opportunities for Business, highlights how the risks faced by the oil industry have increased as it has been forced to shift its focus from relatively "easy" reserves to deep sea drilling sites, such as the one at the centre of the ongoing BP disaster.

The report cites a recent article from Canadian newspaper commentator Jeff Rubins, which predicts that the explosion at the Deepwater Horizon rig will affect the oil industry in a manner comparable to the nuclear incident at Three-Mile Island in the US, which effectively put an end to the building of new nuclear plans for a generation.

"The real legacy of Three Mile Island wasn't what happened back in 1979, but rather what happened - or more precisely didn't happen - over the course of the next 40 years in the US," Rubins noted. "Literally overnight, the near-meltdown of the reactor core changed public acceptance of nuclear power plants. No company in the US has built a new one since."

Commenting on the report, Richard Ward, Lloyd's chief executive, said that the environmental and economic costs of fossil fuels are simply too high to justify on-going investments.
.
.
.
.
.

[Minion]

Re: BP is getting K I L L E D

It felt like a panic yesterday after about 2:00 PM. I watched my account go parabolic. Of course it was over this morning.

I don't think the full panic is quite here yet. Smart money is sitting out while dumb money is catching knives. Every non-trader I ask wants to buy BP because it's so cheap, etc. Today's chart shows something else: big $ getting out later in the day after dumb money piled into it at the opening.

[touchring]

Re: BP is getting K I L L E D

It felt like a panic yesterday after about 2:00 PM. I watched my account go parabolic. Of course it was over this morning.

I don't think the full panic is quite here yet. Smart money is sitting out while dumb money is catching knives. Every non-trader I ask wants to buy BP because it's so cheap, etc. Today's chart shows something else: big $ getting out later in the day after dumb money piled into it at the opening.

"Be Fearful When Others Are Greedy and Greedy When Others Are Fearful"
- Warren Buffett

Simple statement but not easy to do.

[aaron]

Re: BP is getting K I L L E D

I hope you are right, Minion. I bet a handful of puts on BP today. Can you imagine any good news coming out in the next couple of months?

[Anon21456]

Re: BP is getting K I L L E D

I hope you are right, Minion. I bet a handful of puts on BP today. Can you imagine any good news coming out in the next couple of months?

that's quite dangerous because BP already declined A LOT.

[Minion]

Re: BP is getting K I L L E D

I hope you are right, Minion. I bet a handful of puts on BP today. Can you imagine any good news coming out in the next couple of months?

Looking at the chart indicators, all I see is a repeating death march that only bounces on the lower bollinger band.

MACD, stochastics, money flow index, OBV, RSI all say it's not turning around any time soon.

Latest news says the leak rate is ~40k barrels / day with the top hat, dividend suspension is not out of the question, not enough tankers to hold what they're collecting, and the British are probably propping up the stock for the sake of their national prestige.

Disclosure: 97% positioned in puts with my trading account.

[Minion]

Re: BP is getting K I L L E D

that's quite dangerous because BP already declined A LOT.

Fib retracements don't matter when a company is not certain of its near term solvency......

Remember FNM, C, BA, etc?

[Minion]

Re: BP is getting K I L L E D

"Be Fearful When Others Are Greedy and Greedy When Others Are Fearful"
- Warren Buffett

Simple statement but not easy to do.

Buffet's account got mangled during 08

[Andreuccio]

Re: BP is getting K I L L E D

Buffet's account got mangled during 08

My understanding is on balance he's still marginally ahead lifetime, no?

[Minion]

Re: BP is getting K I L L E D

My understanding is on balance he's still marginally ahead lifetime, no?

Losing is losing. He's not a trader.