My guess is 20 to 25. At some point BP will flush its US subsidiary and be protected by the UK. But up to that point, a lot of free cash flow will flow to the US. It’s gonna be a court circus for at least ten years.
It’s really tough to make any money when Obergruppenfuhrer Kenny Salazar has his jackboot on your throat.
I have been buying and will keep buying BP gasoline regardless. I had a 2005 Honda that I put Quiktrip or Racetrac gas in for a long time. It developed a secondary O2 sensor problem that kept tripping. I noticed that when I filled up with BP it didn’t do it as often. Turns out that I researched it and read that some wideband O2 sensors get damaged by high concentrations of ethanol. My conclusion was that R/T and Q/T were spiking their gas beyond the limits. Never again had the problem with BP nor expect to.
Looks like a buying opportunity coming down the road. It will be a stock to keep and eye on.
Where Is BP Headed: $70 or $0?
Ummmm.... probably closer to the "zero" side of that see-saw ... :-)
...BP stock took a real tumble one day last week when it was suspected that there is another leak way down in the bore hole...if that turns out to be true then a pressure relieving shaft may not work...and that could bust the company.
You need to look at how much debt BP has to retire in the next three to five years too.
As I keep telling people: Look at the debt markets.
Go look at how the bond markets are pricing BP’s paper. The curve is massively inverted - meaning that the close-in bonds are priced higher than the bonds further out in time. This means that the bond market is starting to price in an idea that BP doesn’t make it to 2015.
BP has a whackin’ large amount of paper they have to redeem before 2012 - $11+ billion.
Optimist, meet pessimist
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