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catoismymotor (66.27)

You’re unhappy with BP? Whatcha gonna do ‘bout it?

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June 09, 2010 – Comments (9) | RELATED TICKERS: BP , RIG , DVN

You’re unhappy with BP? Whatcha gonna do ‘bout it?

  

Are you going to boycott BP? Not really a smart move, if you ask me. Why not cut off a majority of the way they make money? Sure it will hurt them, but also hurt the clean up in the gulf. Why? Because they will have a reduced war chest of cash on hand to tackle the problem, and that will lead to even slower headway towards doing what can be done to repair the damage.

 

So if a boycott is not what I suggest, then what? Buy BP. Yes, you read that correctly: BUY BP. BP is a corporation, one that can be swayed by shareholders. If enough outraged people buy BP stock they can literally take this bull by the horns and steer (no pun intended) this company in the direction they desire. Imagine hundreds of thousands of people, with an agenda, buying millions of shares of a huge multi billion dollar international corporation in order to effect change in the way the business is conducted. Do you want cleaner sources of energy? Tell BP, as a share holder, you want that to be a focus.

 

Gandhi once said “Be the change you wish to see in the world”. I can think of no better way to effect the change you wish to see in BP than by changing their corporate culture through owning a piece of the company.

 

Cato

 

P.S. - I don't own BP. Nor do I wish to own BP, at this time. It is not within my circle of knowlege.

9 Comments – Post Your Own

#1) On June 09, 2010 at 11:05 AM, brickcityman (< 20) wrote:

This seems like a risky move in that requires widespread collective action with aligned goals. 

 

Even if a large collective of activist investors emerged whats to keep the companies management from using the spill as cover to go "bankrupt" and thus shake off said shareholders like so many fleas?

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#2) On June 09, 2010 at 11:25 AM, catoismymotor (66.27) wrote:

This seems like a risky move in that requires widespread collective action with aligned goals. 

Yep, which renderes the likelyhood of this kind of thing happening to almost nil.

Even if a large collective of activist investors emerged whats to keep the companies management from using the spill as cover to go "bankrupt" and thus shake off said shareholders like so many fleas?

That action alone would shake all shareholders: individuals regardless of ideology and corporate holders alike. Lawsuits would be filed at the speed of light against the governing body of BP in every country where they have a corporate presence.

Hey, I am talking out of my posterior orifice. I could be wrong about all of that.

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#3) On June 09, 2010 at 12:07 PM, TMFLomax (25.61) wrote:

Good thought-provoking post, Cato. My obsessive thought this morning was that while a BP boycott at the gas station level may be counterproductive (after all, that mostly hurts small business owners and not the company itself), that investors should boycott BP stock, ha. Your post does speak to something I usually believe in, shareholder activism and the idea you can put your money where your mouth is, but in this case, I think the horse has already left the barn. The company really has seemed to show a flagrant disregard for so many things -- safety, the livelihoods of people in the Gulf, common sense (I mean really, the lack of contingency planning is shocking)... and by extension, shareholders. It kind of boggles my mind that some people seem to be wondering if the stock is "cheap" right now with so many serious red flags flying. 

Your post is good food for thought though! Like I said, I'm usually a fan of the concept of shareholder activism. 

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#4) On June 09, 2010 at 3:45 PM, ozzfan1317 (79.25) wrote:

I see the stock as cheap only because their damages will most likely be less than what the media is saying and your getting paid 10% now in the meantime until the stock recovers

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#5) On June 09, 2010 at 4:47 PM, catoismymotor (66.27) wrote:

...but in this case, I think the horse has already left the barn.

Well, perhaps you are right. It is not impossible that my post is built more on hindsite than I realized.

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#6) On June 09, 2010 at 9:15 PM, ChrisGraley (31.75) wrote:

I'll tell you this, the damages will be more than the media is saying, but the stock may still be a good investment.

I'm not sure whether or not BP is in control of if they pay their dividend or not.

If they get government pressure to not pay it, they won't pay it.

I still think BP is a good investment.

The question in this case is when do I buy, and I'm holding out a little while longer. 

About the time that you see it bought in CAPS, I'll be buying it in my portfolio.

All you people out there to boycott BP or all oil companies better be walking to work everyday, because the ultimate problem isn't them, it's you.

 

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#7) On June 10, 2010 at 12:04 AM, catoismymotor (66.27) wrote:

 

Chris, 

I agree that BP is a steal, but IMHO RIG is more tempting. But what the heck do I know? After all, I spelled hindsight incorrectly in #5.

Cato

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#8) On June 10, 2010 at 1:21 AM, ChrisGraley (31.75) wrote:

I like RIG too and I might buy them both together.

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#9) On June 10, 2010 at 1:31 AM, TMFUltraLong (99.97) wrote:

I took both BP and RIG long today... I have spoken, let it be known!

UltraLong

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