Is it the right time to invest in BP

[simplystockbroking]

Im thinking surely if you don't own stocks in BP then now or soon would be a good time to invest in them as they are surely going to increase from being at an all time low because of the American oil spill, and the are a worldwide company so its doubtful that they will be permanently harmed by this?

 

Any ideas...

[Carlton]

There is a thread going re this in "The Global Edge" main discussion.

 

IMO, BP is nothing but a gamble at this point.

 

EDIT: you probably discovered that thread, it being 6 days later.

[simplystockbroking]

Yeah I did, thanks anyway Carlton... Im still ever so tempted but I keep having to slap my wrist and say no for the time being.

[purechatterbox]

I think at this point of time it's not advisable to invest in them primarily because of the certain issues with them. Maybe it's on 50-50 so you better think about it I guess. Life is full of risk but in my opinion you better know which you will go in since we all experience a crisis. That's my opinion it is still up to you.

[drbubb]

Pershing Square Capital Wagers Against BP Debt With Credit-Default Swaps

 

By Christine Richard and Shannon D. Harrington - Aug 26, 2010 1:27 PM PT

 

Bill Ackman’s Pershing Square Capital Management LP is betting against the debt of BP Plc through credit-default swaps, saying the energy company’s creditworthiness will be dented for years by the biggest offshore oil spill in U.S. history.

 

The accident has “likely permanently impaired the ability of BP to operate effectively in the U.S.,” Ackman wrote today in a letter to investors obtained by Bloomberg News. “The clean-up costs, penalties, and legal liabilities of the spill will continue to impair the company’s credit for many years.”

 

Pershing, which made more than $1 billion in 2008 betting against bond insurers through credit swaps, began buying protection in May against London-based BP defaulting on its debt, the month after a rig explosion in the Gulf of Mexico triggered the spill.

 

Ackman, who initially paid 60 basis points a year to protect the debt, is now paying an average cost of 280 basis points a year, according to the letter, which was posted earlier by financial news website Dealbreaker.com. Ackman didn’t immediately return a call for comment. Scott Dean, a BP spokesman, declined to comment.

 

Credit swaps protecting against a BP default for five years soared to at least 631 basis points on June 16 from 42 basis points the day before the rig explosion, according to data provider CMA. That cost has declined to 255 basis points after BP sealed the well that spewed an estimated 4.9 million barrels of crude into the Gulf of Mexico.

 

http://www.bloomberg.com/news/2010-08-26/a...-oil-spill.html

[jefcully]

All banks still sell so they have certainly recommended not yet hit bottom. And it is still unclear whether they will pay dividends if they are not alone will the decline in stocks.