Do you want buy BP Stock now?

5 Jun 2010

British Petroleum (BP) stock is declining. Some analysts suggest to buy this stock. Almost all analyst suggest to buy or hold and no one suggest to sell. Undoubted, BP is an old oil company that has good reputation. Some people think the company can overcome the oil spill.
Most investor does not know about it. They overreact to a rumor or fact. It because the stock decreases to 40%. It also decreases market capitalization down to $115 billion from $183 billion. The oil spill in Mexico gulf can lose BP. BP should pay the environment disaster which cost up to three billion dollars.
Like common investor, I am worried with the BP stock price, because it has decreased forty percent in a month. On the other hand, we cannot sell the stock now because we must be loss.
You should know that BP has so many oil drilling in other country that produces much oil. The bad news is the Mexico Gulf is the biggest oil producer. The production of oil is 450,000 barrels per day or 11 percent of world oil producer.
If you feel that the stock could not rise again, you can sell it. If, on the other hand, the stock could rise, you can hold it and buy more.

photo:Mike Licht,Notionscapital.com


TAGS financial statement British petroleum BP oil industry investment risk oil spill mexico gulf market capitalization


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