Use access key #2 to skip to page content.

BP and RIG Will Be Two of 2010's Best Stocks of the Year

Recs

9

May 03, 2010 – Comments (18) | RELATED TICKERS: BP , RIG , BAC

Now this is your chance.  Like 2009 where the media and Jim Cramer and TV in general scared you out of huge gains like the banks and stocks that were just too low.  How do you feel today not owning BAC when it was under $3 and as Jim Cramer said "nationalization is on the TABLE!".  How do you feel not getting in on SIRI or LVS or any of the many airlines that are now multiples higher after just a year ago.  UAL went from $3.xx to $20+ today.  LVS went from under $2 to over $25 today.

People always complain in after the case of wishing they owned xyz stock when it was low.  Now you got the same scare tactics in place for BP and RIG.  I own BP and a lot.  I own a lot more now after doubling up last week.  The media has you thinking BP is doomed for decades to come.  They have you thinking they will lose billions on billions on billions.  They got you thinking there is no end in sight.  Lawsuits, federal cases, negligence, incompetence, etc.  Well guys, BP isn't some local goof ball.  BP is here to stay.  They are a worldwide powerhouse in the oil industry.  Yeah they will pay the fines and the suits and carry on.  They will be bigger than ever after this is all over. 

At under $50/share with over 7% dividend, you would have to be insane to not get on BP if you are not already.  I know I'm in.

18 Comments – Post Your Own

#1) On May 03, 2010 at 1:12 PM, Griffin416 (99.98) wrote:

I added to my rig on friday and doubled my BP today. this is a ridiculous amount of scared capitulation selling. the retail investor is dumb not to jump into this one.

Is it as bad an the Exxon valdez? Well, right after the spill Exxon stock when down a whopping 5% in the 3 weeks after the spill slowly and then proceeded to go up with the market afterward. The total Valdez cost was one years worth of earnings. Given this, BP is WAY overdone. Don't forget RIG will soon have a yield of around 3%

Report this comment
#2) On May 03, 2010 at 1:14 PM, Option1307 (29.90) wrote:

I actually like RIG better here, and those shares are starting to look mighty cheap! Both plays will likely eventually work out, and you will get a nice dividend while you wait for BP; however, I think you will be rewarded in a shorter time frame with RIG vs. BP. Near term profits will largely be uneffected at RIG while BP will experience some short term pain.

However, I agree with you, both look very complelling.

Report this comment
#3) On May 03, 2010 at 1:36 PM, irishred1 (< 20) wrote:

I prefer the SCREAM rule for overvalued or undervalued stocks.

 

Ie. For overvaluation

Don't short a stock when people say it's simply "overvalued"

Don't short a stock when analysts start saying it's simply "overvalued"

Don't short a stock when EVERYBODY says it's "way overvalued"

Begin to consider the short position (short sale, buy puts, whatever) after people have been SCREAMING it's overvalued for a while.

 

Disclaimer:  The scream rule will either net you great profits or run you bankrupt.  Use at your own risk.  :D 

 

Report this comment
#4) On May 03, 2010 at 1:46 PM, russiangambit (29.49) wrote:

How long is your time horizon? May be BP's sell off is overdone but we won't know the extent of the damage for months and they are still at least a week away from shutting down the leak.

The fall out will play out for a year at least. Are you planning to hold it that long? I think you are simply gambling. At this point the outcome could go either way. Gulf of Mexico coast line is very densely populated unlike Alaska where Valdez happened.

In addition to federal lawsuits BP is facing a lawsuit from any number of businesses located in the Gulf.

 

Report this comment
#5) On May 03, 2010 at 1:51 PM, IIcx (< 20) wrote:

HAL, RIG, and BP may enter a cycle of law suits that will last for years and HAL is over valued at this point.

Insurance for BP and the other oil producers in the Gulf is likely to rise.

I'd wait to see how this trends before betting the farm. Unless they do a lot more than they are doing, this could turn into a mess unlike anything we've ever seen before.

The currents in the Gulf flow to the Arctic Circle. Its unlikely that oil can transport in the currents because its lighter than sea water but if they don't contain the mess it will migrate rapidly. Thus far, sufficient equipment to contain the mess and handle rough seas (6' plus waves) doesn't appear to be in place.

The only thing in our favor at this point is the eddy in that area.

http://ocean.tamu.edu/Quarterdeck/QD6.1/spin.html

Report this comment
#6) On May 03, 2010 at 2:15 PM, mikecart1 (99.21) wrote:

#4, it isn't gambling because I have held BP for a long time and made lots of money from dividends.  I am also an engineer and know two BP high management personnel.  This oil spill has blown way out of proportion.

BP provides something the entire world needs.  Like it or not, oil is here to stay for quite some time.  All the alternative fuel bandwagoners need to face reality or invent something themselves.

Report this comment
#7) On May 03, 2010 at 3:39 PM, leohaas (35.73) wrote:

Great post,  I may pull the trigger on one of these two (or both) myself.

But this is clearly not for everyone right now

RE: How do you feel today not owning BAC when it was under $3 and as Jim Cramer said "nationalization is on the TABLE!".  How do you feel not getting in on SIRI or LVS or any of the many airlines that are now multiples higher after just a year ago.  UAL went from $3.xx to $20+ today.  LVS went from under $2 to over $25 today.

This has a lot to do with your risk tolerance.  The lows in these stocks date from the time many thought we were entering a Great Depression, and that the banks and airlines would be among the hardest hit. Turns out it was only a Great Recession, nothing worse (no doubt some here on CAPS will disagree with this statement, but what counts here is the perception of the market makers). Rightfully so, those who took the risk were rewarded. Congrats to you...

That does not mean that everyone who missed the run up in these stocks has to feel bad. Plenty of investors did not want to take the risk. They were rewarded accordingly. I am among that lot, and it has not costed me one minute of sleep!

Report this comment
#8) On May 03, 2010 at 3:44 PM, wjmwestoak (< 20) wrote:

I am gonna take the chance on BP and RIG.  Had a tip on TCK when it was around the $4 mark and it hit $43 within 14 months.  I am not missing another chance.  Book it.

Report this comment
#9) On May 03, 2010 at 3:58 PM, blueberrygoo (69.74) wrote:

I could see this being a nice play with previous (Bush) administrations but this is a hot political potato right now and you know Obama doesn't want to let BP get off the hook easy.  Otherwise I would be all over this stock's sale price!

Report this comment
#10) On May 04, 2010 at 11:07 AM, mikecart1 (99.21) wrote:

Even with DOW 250+ fall today, BP is still in the green!!! What a call! :D

Report this comment
#11) On May 06, 2010 at 10:45 PM, rosemanjhk (57.02) wrote:

What are your thoughts on HERO??

Report this comment
#12) On May 07, 2010 at 11:16 AM, mikecart1 (99.21) wrote:

#11 I don't follow stocks under $1bil market cap usually unless spec stocks.  I own few spec stocks.  I don't know much about HERO.  I know more about US oil stocks.

Report this comment
#13) On May 07, 2010 at 11:20 AM, BlackshearCaptL (< 20) wrote:

Well if you bought BP or RIG at their post disaster bottoms you escaped this espisode unscathed.

Report this comment
#14) On May 17, 2010 at 12:04 PM, russiangambit (29.49) wrote:

Well, is BP even a better deal now? Me, I can't force myself to even consider buying  company so inept. All their efforts to seal the well seem to be so completely not up to standard. A tube that only gets 20% of oil out, that is after 4 weeks of trying?

Report this comment
#15) On May 17, 2010 at 12:11 PM, ragedmaximus (< 20) wrote:

I missed c when it was a dollar cause everyone said NO DON't DO IT and I listened but now im 100 % cash and ready to pull the trigger at 3.75-3.50!

Report this comment
#16) On May 17, 2010 at 12:19 PM, russiangambit (29.49) wrote:

> I missed c when it was a dollar cause everyone said NO DON't DO IT and I listened but now im 100 % cash and ready to pull the trigger at 3.75-3.50!

Did you also miss it when it was $10, $6, $3 ? I actually bought some at $3 and sold at $6. You can never tell how far a falling knife will drop. 

 

Report this comment
#17) On May 17, 2010 at 12:23 PM, ragedmaximus (< 20) wrote:

c in 2015 =15-40 bucks so 420%---1000% gain and you can take that to the C  BANK!

Report this comment
#18) On May 17, 2010 at 12:25 PM, Superdrol (97.18) wrote:

Good luck with BP.  It keeps going on sale every day.  Other than a micro scalp trade the stock is a falling knife and the best thing to do is step aside. 

Report this comment

Featured Broker Partners


Advertisement