Its Official, BP is Back
BP Plc (NYSE:BP) shares since this summer have rallied back 84%, proving that big coporations always win in the end, thus there's no point in rooting for the good guys.
The massive international coporation has managed to raise itself from the dead and closed Friday at $49.25 a share, never again will we see BP sell at the $26 level. Before this past summer, you would have had to bought BP back in 1996 to scoop it up at $26.75.
Could it be proof that oil does rule the world or just BP?
The Quick and Dirty -- With the 'BP Oil Spill' in the rearview mirror, Russia on deck, and to oil prices rising close to 16% in the past 12 months and every day creeping closer to $100 a barrel, BP is going to rake in future earnings which in time will take shares higher.
Mastery Sponsors - Become one Today
This week Oppenheimer (NYSE:OPY) raised their price target on shares of BP (BP) from $45 to $55. The last time Oppenheimer made any moves on BP was back in June when the stock was tanking, that was when they set a $45 target price. June is when BP shares fell from $45 to $26 yet Oppenheimer only went as low as $45 -- guess they were right.
President Obama called the spill "the worst environmental disaster America has ever faced."
At the very bottom RBS said "Buy" BP, they went from "Hold" to "Buy" on July 6th saying essentially that some of the most-pessimistic scenarios possible have been priced into the shares. RBS believed spill in the Gulf of Mexico could cost BP somewhere between $16 billion and $67 billion. The Holy Spirit itself Goldman Sachs (NYSE:GS) predicted the spill could cost BP $200 billion.
ACTUAL RETAIL PRICE...
$40 billion, that's it -- according to BP.
Now that we don't see the "BP Oil Spill" on the news anymore, most Americans have to be reminded about the 11 workers that died in the blast and the millions of barrels of toxic crude oil that flowed into the Gulf.
Cleanup, government fines, lawsuits, legal fees and damage claims will likely exceed the $40 billion that BP has publicly estimated, according to an Associated Press analysis. The AP analysis shows the company is likely to face $38 billion to $60 billion in spill-related costs. A settlement with the federal government could reduce that amount, while a successful class-action lawsuit could add billions more. But how much more, even if its another $10 to $20 billion, will it really matter to BP's bottom line?
BP won and its share price affirms it.
Tar balls are still washing up along coast and places like Orange Beach, Alabama. Orange Beach can't take another hit this Spring and Summer if tourism doesn't comeback and their beaches aren't ready in time for the masses. Business in Orange Beach was off about 50% this year because of the spill, imagine how its residents feel watching BP's shares tick higher each month. America has been left with a mess to clean-up, so off BP goes to the next superpower...
FROM RUSSIA WITH LOVE
How could BP take are of those blasted Gulf spill related costs for good? Watch the following, how about this for a long term reason to buy BP:
Disclaimer: No positions in any of the securities mentioned in this publication.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- While Presidential Election Takes Focus, US Economy Slips Further | Financial Sense
- NSA Whistleblower: US Intelligence Worker Likely Behind DNC Leaks, Not Russia | ZeroHedge
- Is Oil About to Rollover? | Financial Sense
- China Moves Forward With Its De-Dollarization Strategy | ZeroHedge
- Cashless Society - Is The War On Cash Set To Benefit Gold? | ZeroHedge
- Bank Of England Confirms: Debt Issuance Levels Tripled Since Quantitative Easing | ZeroHedge
- Which Would Be The Better Economist Cover? | ZeroHedge
The most relevant financial news and articles from the Internets
- Just because we haven’t found aliens doesn’t mean they haven’t found us | Business Insider
- I tested these cheap Bluetooth headphones and was genuinely blown... | Business Insider
- 11 Easter eggs hidden in the official 'Westworld' website | Business Insider
- Lego Is for Girls | BusinessWeek
- People who actually lost jobs to Mexico and China are less likely to support Trump | Business Insider
- Access an exclusive BI Intelligence report for FREE today | Business Insider
- Everything you need to know about refinancing your student loan debt | Business Insider