A Good Time to Buy BP?
© IBRRC
The disaster in the Gulf of Mexico transcends monetary frameworks. It can't be measured in terms of dollars. And anyone who thinks it can be measured primarily in terms nickels and dimes is, well, cynical. That said, nickels and dimes are still important, and money is going to continue to be the most tangible way of discussing the disaster. And while the environmental damage of the spill may be difficult to fathom yet, the economic impact is becoming tangible.
If you view the world though the eyes of a financial advisor, BP's disaster in the Gulf of Mexico may very well be an opportunity. In April, BP was trading on the New York Stock Exchange at about $60 a share. Today it is below $30 a share. IT will probably continue to decline – for a while.
For most companies you'd be looking at a death spiral. Eventually the stock (and the company) would become worthless, and it would probably close. But very few analysts think that BP will see that fate. Maybe it will be next year. Maybe it will take five years. But BP will trade at $60 a share again. And as Forbes points out, that makes this a good time to buy..
Global Marketplace | Greg Cruey | 02 July 2010 |
