BP & Chapter 11

So far they have spent nearly 1 billion dollars on the clean up. They could continue to spend that much every month for a year and still make a profit. Not to mention the tax write-offs they will claim for years to come.

BP aren't going bankrupt any time soon.
 
Quote from BigFunky:

So far they have spent nearly 1 billion dollars on the clean up. They could continue to spend that much every month for a year and still make a profit. Not to mention the tax write-offs they will claim for years to come.

BP aren't going bankrupt any time soon.
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Now that depends. It's been 50 days and counting yet no stopping the leak. Florida will suffer a huge loss this summer and will surely seek damage from BP. If BP cleans up the mess while it's trapped in the Gulf, I'd say they don't file. If they can't, and this mess spills into the Atlantic, BP will shatter no doubt.
 
Quote from forsalenyc:
If they can't, and this mess spills into the Atlantic, BP will shatter no doubt.
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I'm not so sure there's 'no doubt'. I seem to recall a couple of American companies that were deemed 'too big to fail' and rescued when they were more than bankrupt. Might it depend on the extent to which bankruptcy would affect the pension plans of those whose retirement is secured in part by BP shares?
 
BP only makes those kind of profits if oil stays above $70s, what if oil price crashing down to $40, or even lower, they better hoping they can hold oil price high, other BP's competitors hold back their productions, and those "revolutionary terrorists" start bombing oil pipelines at the same time.
 
Sure, they could go to zero.....a lot of truths about the severity of the leak is still being masked. I think it's a great SHORT play, even at these levels.

The guys on CNBC's Fast Money alluded to the fact that they were right about at a buying point yesterday (at 34 and change), so if that isn't a signal to short, I don't what is.
 
Quote from forsalenyc:

Now that depends. It's been 50 days and counting yet no stopping the leak. Florida will suffer a huge loss this summer and will surely seek damage from BP. If BP cleans up the mess while it's trapped in the Gulf, I'd say they don't file. If they can't, and this mess spills into the Atlantic, BP will shatter no doubt.
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Why would it shatter? Worst case they can just close down the BP USA, the rest of the company is unharmed.
 
Highly doubtful it could happen anytime soon. Liquidity is far from a concern at this point, what some are speculating is that BP could do it because they would be afraid of future liabilities, lawsuits will go on for a long-time in all likelyhood so that doesn't seem likely
 
This stock could go to zero, anyone who thinks it cannot is only fooling themselves. I know they make billions and billions in profits but as long as that pipe keeps spewing out oil nonstop the clean up could cost tens of billions of dollars, there is talk about Florida losing 200,000 jobs due to this. No one has a clue how much is still pouring out and any number bp throws out is just fucking lies anyway.
 
BP going zero is one of the most ridiculous things I have seen here. From people who should know better, as well!

Absolutely absurd.


It will trade around fifty bucks in less that six months.
 
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