From a fundamental perspective BP is not a buy. Oil is an extremely dangerous substance. You are not even permitted to leave oil in your backyard or to even lob it in a trash can. You have to take used oil to a special certified hazardous waste collection site to dispose of it. Oil causes cancer. Oil has caused mutations in insects and birds. Oil is so toxic that it causes skin rashes and can damage the lungs just as a result of sucking in air.
There are going to be lawsuits against BP for the coming 20 years. Many people are going to get millions of dollars in damages against BP. Even the EPA is thought to be ready to go at a maximum fine against BP of $8,000 per barrel of oil leaked into the Gulf Of Mexico.
We may perhaps see BP divide itself into a new company and allow the BP as we now understand it, to crash and burn under the monetary obligations they will have for the next 20 years. I am sure a plan is in the works by the execs of BP to get together to give rise to a new oil company that will be untouchable and sheltered from any lawsuits and fines associated to the Gulf Of Mexico oil spill. They have almost certainly already planned such a move.
This is barely just starting. I anticipate BP to have to compensate hundreds of billions of dollars worth of damages.
From a technical analysis viewpoint, BP has had nothing more than a good spring up within a greater downtrend. One needs only to look at the monthly stock chart to appreciate just how pathetic this most recent upward move in BP stock has been.
Think of BP like you would dating. Are you that hopeless for a long stock that you have to look at BP? You intend to tell me that you can not discover any better looking uptrending stocks in uptrending sectors to purchase? You need to acquire a superior stock screener if you just answered yes to that.
I understand. We both just can't seem to get over our own self-esteem.
Everybody likes the notion that they could make a ton of money out of the BP tragedy by going long BP when everyone else was still hating BP. Correct? You, like Chuck Norris, were the only guy who had the valor and the intelligence to go long BP when everybody else was running in fear. You and you alone saw the chance that really existed when BP sold off. You were the only gentleman in the room that was clever enough and that actually understood the stock market good enough to buy BP right now.
Nearly all superior SOBs wash out of the market in under 5 years. Do not be bigheaded. The stock market is not the place to express your egoism or to try and prove that you are a smarter investor than everybody else. That is a great way to lose all your money. The only motive to trade in the stock market is to make money. Whatever else than that is foolishness.
In this episode I give you my judgment on BP and anybody who says this stock is a good buy right now.
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