BP is a strong company with a good record of dividend. It's future is really dependent upon the outcome of the spill problems in the Gulf. It is not predictable when that spillage will stop. My view of looking at BP's future depends on three main factors :
- How much of the loss happens to BP due to this spill in terms of Cost of oil lost.
- How much BP will have to spend for clean up efforts.
- How many lawsuits to be followed due to these spills.
Although BP's stocks have fallen about $60 to $45 (about 25% down) , but anyway stock market have gone down about 7-8 % anyway. Just because there are investors who are bullish about BP, I still think that BP's stock rate would fall more, before it starts going up again.
You never know with this spill problem in Gulf BP would go way too down, but my understanding is it would come down to about $35 before going up. If it comes down to $35 that would be worth taking risk with BP stock.
What do you think about BP's future?
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