Stocks and Shares - Is it Time to Buy BP Stock ?
UPDATE 5 : July 12 - To see the Gulf oil spill webcam click here oil spill live video feed BP seems to be saying things are going better but of course BP has said lots of stuff over the last few months so I take little notice of what BP says. The share price ha recovered from 300p to 390p which is a nice bounce for anyone long BP but it's still way below the 200 day moving average (see below)and there's stil plenty of room for thing to get worse, so still only for gamblers IMHO.
UPDATE 4 : [June 8] The top kill was not successful - but the capping operation has met with a degree of success - BP are quoting various figures for how much oil they are recovering from their oil spill, but given we don't know how much oil is leaking from the spill whether the leak has increased as a result of shearing the pipe, we don't really know the significance of the figures BP are quoting. People still say the only solution is a second well which is being drilled at the moment, which was initially beng quoted as taking until August to complete, but now people are starting to talk of 'some time in the autumn'. Obama has however said that if Tony Hayward had been in his government he would have sacked him for his remarks on wanting to get his life back!
The BP share has had a bit of a pop today (Friday 28 May) but still too early to buy IMHO
UPDATE 3 : The BP share price slumped 13% today June 1 - and the price is stil way below the 200 day moving average - so still too early to be buying IMHO except for gamblers]
2 month BP stock chart
The oil spill is a horrendous tragedy and time alone will tell just how bad it gets. But have BP stocks fallen far enough ? Is it time to buy BP stocks yet ? OR is it better to wait until they finally manage to plug the oil well and clear up the mess they have caused ? Well here are a couple of BP Stock charts to consider. For the live BP price in the USA type in BP into the window top left.
The 10 Year Chart with the 200 day moving average
and the 2 Year chart with the 200 day moving average
The price is certainly falling fast but it's still nowhere near the 380p we saw back in 2008. Personally I would wait for it to fight its way back over the 200 day moving average but braver souls might take a punt before then but personally I like Warren Buffett 's idea of "shooting fish in a barrel, when the water has run out"
BP still hasn't plugged the leak and the costs and damage just keep mounting - their latest attempt will be to top fill the pipe with cement and the like on Wednesday morning which they say has around a 65% chance of working. So let us hope that they get it right this time as the oil spill is frighteningly large and getting larger !
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2 comments:
I'm waiting until the BP stock plunges a little further to buy it, my verdict would be buy in a couple months. Why? because at the moment BP is dealing with a crisis and Obama just handed them a $68 million bill for clean up, and the costs will only increase for BP. But they are a giant, and in a few months they will be right back on their feet again, even after this disaster. In the meantime I'm investing in gold, it's a great way to grow wealth, especially with the dollar being so shaky and the Euro plummeting in value. I also found a pretty good article elaborating on the ways to invest. here's the link if you're interested http://theinvestmentreporter.wordpress.com/
Hi Anon,
Thanks for the link I will check it out. I agree with you about BP, I still think it has further to fall too. I look at the charts nd the BP share price is still a long way below its 200 day moving average. I would only consider buying BP when its share price starts rising back aboe the 200 day m.a.
Not so sure about gold though, as they re now selling gold bars in vending machines in Abu Dhabi, which could be taken as a sign that we are nea the top.
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