Oil Spill Hurting BP's Stock Price...

[KharmaTrain]

Looks like the investor class is putting the hurt to BP...selling big time. The stock has lost 1/3 of its price since the Deepwater disaster began.

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Seems Wall Street knows this catastrophe is gonna cost BP big time...

Discuss...

[uponit7771]

1. This is a good thing, BPs CEO has been callus to a degree. I'd be willing to give them the ...

...benefit of the doubt till I saw the 60 mins bit...

[douglas9]

2. Stock Chart

http://www.nasdaq.com/aspx/dynamic_charting.aspx?selected=BP&symbol=BP&timeframe=6m&charttype=line

[KharmaTrain]

3. Thanks For Posting...

Sheesh...dumping 160,000,000 shares in one day. Sure not a vote of confidence. If there's not an incentive for BP to cap this thing an fast, this is it.

[Soylent Brice]

15. woah shit!

[cbdo2007]

4. Uh oh....don't show this to the guy on here who bought 300 shares a few weeks ago.

hahahahahaha

still laughing about this one.

My guess is that he realized his mistake by now and has sold before further losses.

[KharmaTrain]

5. I'm Chuckling About Those Who Say BP Is Profiting From This Disaster

They may not be losing billions with the actual oil spill, but ya gotta think that watching the company's value drop by 33% in less than a month has gotta hurt.

[cbdo2007]

6. "they may not be losing billions...." - Yet

I wouldn't be as worried about their stock price if it looked like they actually had any idea what they were doing in getting the spill stopped and cleaned up and stuff - but this thing is still gushing and they have NO IDEA how to get it to stop. Not to mention clean up and all that stuff later on and loss of all of this oil on their books.

This is going to hurt BP for many years financially. Sure, their executives are still bringing home multi-million $ salaries but the value of the company and regular worker salaries are going to suffer.

[KharmaTrain]

10. Let 'Em Bite Their Noses...

I won't be unhappy to see BP end up in Chapter 11 due to this disaster and it may be a good thing in the end. Yep, the execs are taking home the big checks, but for how long? I see Hayward, the CEO who sounds like the Gieco Gecko as a "dead man walking" as he'll get the blame from the stockholders...that tumbling stock price is his "referendum".

My hope is the company gets taken apart...having to sell off holdings to pay off its liabilities. The oil is still gonna be pumped and they're still going to need the "little guys" to do the grunt work...just a different name on the paycheck. As long as this country remains addicted to oil, the drilling will go on.

[Statistical]

7. That was me. I should have known better. Catching falling knife and all that.

It held up pretty well until the 13th. closed above 48 on 13th and then opened Monday and gapped down. Hit my stop and I was out.
Reduced my loss somewhat by selling May strike calls against the shares (buy & write) but still took 8% loss.

Then again the month of may has been pretty shitty for the whole market. BP was going down because of the spill but could have rallied into a market wide rally. Rising dollar, falling oil, dropping demand, the spill, and whole market selling over 12% from the peak was simply too much.

Short Euro is still working though as is cash and bear put spread on SPX. Sadly those are about the only things working this month. :(

[cbdo2007]

11. Sorry to hear.

Really, I don't like to see anyone lose money and Lord knows I've had some losses this month. I just think you jumped the gun on the BP thing. It will bottom out here if/when they get the oil spill plugged and the rest of the market pulls it back up. THEN we'll both see some big gains. *high five*

[Statistical]

12. No problems. It happens.

I never put more than 5% into a single position and the BP position being speculative was even smaller than that. Glad I used stop rather than riding that down another 5%.

In nominal terms 8% loss on <5% position isn't much. The entire market sliding 12% along with Brazilian market, and Chinese this month hurts a hell of a lot more (even with hedge and Euro short).

What is kinda interesting is BP bounced off the lows today and is down less than the overall market on a rather broadbased decline.

[lpbk2713]

8. This is BP's biggest concern.

The gusher can go to hell as far as they are concerned. But
they will wet their pants if their stock takes a dive.

[Kalyke]

9. Who cares about their damn stock prices.

The stock market is phantom wealth for anyone earning less than $1 million a year, anyway.

When workers get laid off, the stock market rises - when the economy looks good for Joe and Jill Average Middle Classer, the stock market tanks.

[Statistical]

13. That is a rather simplistic view.

Companies rose by cutting costs but companies have reached the point that they simply can't cut much more cost. Without expansion corporate profits and thus stock prices can't climb. In a recession you can turnaround faster than your competitors by going lean and mean but go to lean and you are essentially just starving.

As far as needing a million dollars that is just silly.

Someone making even $50K a year putting 5% of their paycheck aside in investments can accumulate a significant amount of wealth over his/her lifetime.

[Kalyke]

16. Who can afford to put 5 percent of their paycheck aside?

As I said in another thread, it's not about how much the middle class believes they are taxed - it's that wages are stagnate, so they can't afford the cost of living increases, making taxes look larger than they are.

The same is true in this scenario. The only people earning $50,000 a year who can afford to put 5 percent of their pay into the phantom market are single people or couples with no children.

However, it's not "silly" to believe that the uber-wealthy used 401Ks to lure middle class folks into the stock market so that they would have more money to play with - and eventually siphon off. Face it, most middle classers don't have the money to pay a professional to run their stock buys and sells and/or don't have the time to learn the system themselves; therefore, the wealthy, who do have the money to hire professionals or the time to learn it themselves, can always game the MAJORITY of the system.

[Statistical]

18. No matter how much or little you make someone else live on 5% less.

If you make $50K a year someone else is surviving at $47,500 per year.
If you adjust your lifestyle down to a $47,500 lifestyle then you can save 5% of your income.

Same applies at $100K or $30K.

I mean even someone making $250K a year won't be able to invest/save if they are living a $270K lifestyle on $250K income.

Now the very poor I agree they have no opportunity but to say the majority of Americans can't save 5% is silly. The majority of Americans are addicted to consumerism. Brand new cars, vacations, house 50% larger than average home just 20 years ago.

[KharmaTrain]

14. It's A "Vote Of Confidence"

As long as this country remains addicted to oil, they will be drilling in the Gulf and other places and those workers will be busy as ever...just will be a different name on the paycheck.

The plunge is a vote of no confidence from the share and stockholders. While BP couldn't give a rat's ass about what you or I think, their execs sure do watch that price as if their jobs depend on it. The longer this disaster goes on, the bigger the costs and liabilities grow and its going to hurt the stock price which could bring about many big changes in this corrupt and inept company.

[Kalyke]

17. I understand that, of course.

My utterance was more flippant than you or the other poster who responded to me took it.

I simply mean that until Bayou Polluter (BP) caps that well and pays for every last cent of clean up and restoration, that I don't give a rat's booty if their C-levels are crapping in their pants over stock prices.

[Gecko6400]

19. Any of us

that has a retirement program, union, teacher, police, etc or other 401 sort of thing is part of the so called "investor class" and we need to remember that!