Moderator: Charlie Phillips
kfed wrote:do you think it will get worse for this stock?
maybe the everyone jump in beat up feel good effect?
Long term I think it is naive to think anything will really hurt this company, but maybe I am wrong
Washington Post wrote:It was a bad day for most stocks today, but it was a bloodbath for embattled oil giant BP.
Shares of BP dived 16 percent today, driving the stock price to below $30 per share, the worst drop on record for the company. The British energy giant closed at $29.20 per share. More ominously, investors and traders rushed to dump their BP shares: Trading of the stock occurred at four times normal volume today.
As a result, the asset-rich company is now trading for less than its book value, which is essentially all the assets it has -- oil fields, oil rigs and so forth -- minus intangible assets and liabilities.
In English, this means that investors and traders think that the company is now actually worth less than all the hard assets it owns. That's a confidence trade.
The company has now lost a staggering half of its value since the late-April explosion of the Deepwater Horizon rig and subsequent oil spill. You calculate a company's value -- called its market capitalization, or market cap -- by multiplying its stock price by the number of outstanding shares.
Today, BP is worth $91.4 billion. In mid-April, the company was worth $180 billion. Wow.
Enigma wrote:Discussions now are about the U.S. government declaring a "receivorship" status, which basically means that the U.S. declares the firm a bankrupt company. A good time to buy? Not in this decade. If the U.S. does this, which is highly likely, BP will be under controf the U.S. Bankruptcy Court or, (EDIT: "probaby")in this case, Congress, for many years to come. Will their stock rise to meet the conflict. I highly doubt it.
Oil Pollution Act wrote:Title I, section 1006, provided that Federal trustees shall assess natural resource damages for natural resources under their trusteeship. Federal trustees may, upon request from a State or Indian tribe, assess damages to natural resources for them as well. Trustees shall develop and implement a plan for the restoration, rehabilitation, replacement, or acquisition of the equivalent of natural resources under their trusteeship.
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