BP p.l.c. (ADR) (NYSE:BP)

CAPS Rating: 4 out of 5

BP is all things oil and gas. From exploration to refining and selling, it’s among the world’s largest integrated oil companies.


Player Avatar colddrink73 (87.98) Submitted: 6/2/2010 10:48:47 PM : Outperform Start Price: $32.38 BP Score: -68.54

ok so they cant stop the oil, ok they have had deaths in their plants....BUT. Look at the profits, look at that dividend and if there really is "no new drilling" ( "Read my lips... NO NEW TAXES" GW senior ) then companys will keep their market share. REAL $ PLAY

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Member Avatar colddrink73 (87.98) Submitted: 6/3/2010 6:38:36 PM
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Ummm... very interesting but I am not sure how this relates to BP

Member Avatar georcole (39.62) Submitted: 6/10/2010 11:39:44 PM
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This is a primary holding in an IRA of mine. I am taking advantage of the recent downward spiral to convert that particular IRA over to a Roth. Since the price is low, I will be taxed on a lot less. I wish it had converted over on 6-9-10 because the price was really low. I was hoping it would stay low like that until the conversion is done. I originally bought in at around $52/share, so if it had converted at around $28/share that would've been sweet. I'm just going to try to add to my position while it's beat up.

Member Avatar georcole (39.62) Submitted: 6/11/2010 12:53:28 AM
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I just checked and it did convert. My "cost" for tax purposes is $29.22/share. I'm pretty happy about that. I'm just not sure how the new way of paying dividends is going to affect me, if it does affect me. I do not think that it will affect me. I hope it doesn't because my understanding is that I will pay appx. $50/share for them this quarter. Hopefully I will still get them at market price. I'll find out on the 21st.

Member Avatar colddrink73 (87.98) Submitted: 6/14/2010 11:16:39 PM
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what is this "new way of paying dividends?" hmmm maybe I should stop packing and cleaning long enough to read some news articles. I hope it works out for you. Right now I'm looking at a 20% loss but I plan to double up on the first should take it to like a 7% loss if it stays where it is now. I will have to look into it though but right now I just don't see this company going under so I still feel that in a year or two this will just be the latest Exxon Valdeze.

Member Avatar georcole (39.62) Submitted: 6/14/2010 11:59:29 PM
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The new dividend will be paid in shares instead of cash. From BP's website "The scrip reference share price is the average of the US dollar equivalent of the closing mid price quotation for a BP ordinary share on the London Stock Exchange Daily Official List for the four consecutive dealing days beginning on the ex-dividend date of 5 May 2010. " For the current quarter the price of the shares is $50.893 per share. That is obviously a lot higher than the current price of about $30 per share. So if you own 100 shares, with the scrip you will receive appx. two shares, whereas with the cash dividend you would buy appx. 3 shares depending on the price on June 21st assuming that you are reinvesting your dividends. That is why I am hoping that I am not affected. I would very much like to pay $30 instead of $50 per share. You can opt in or out of the scrip. How you hold your shares is the deciding factor in what the default payout method is. I am under the impression that I will be receiving the $.84 per share instead of some highly overpriced shares.

I too believe that this too shall pass. I think it is interesting that Exxon is now the largest company in the U.S. based on market cap after the Exxon Valdez mess. I realize that it was quite a while ago, but I plan on holding BP until I retire, if not longer. So I can wait. I do anticipate the dividend getting hit, but I don't think that the company is going anywhere. Where I stop for gas everyday (Yes, everyday. I ride a motorcycle and it is 100 to 120 miles round trip to work everyday depending on the route I take, and that depends on traffic and time of day. Plus I do a little extra riding when I go to the store or gym or just for a joyride.), there are five gas stations. One of those is BP. I bet you can guess where I get my gas.

Member Avatar georcole (39.62) Submitted: 6/17/2010 10:57:54 PM
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Sorry Greg. Apparently we don't have to worry about how the dividend is going to be paid out now that they decided not to pay one for a while. And I was so looking forward to accumulating those extra shares while the price is low. Oh well. I'm still going to hold my shares.

I wonder if CAPS is going to adjust the starting price upward due to the dividend being suspended. They lower the start price as soon as the dividend is declared, so I already had my price lowered. I'm just curious.

Member Avatar colddrink73 (87.98) Submitted: 6/18/2010 12:34:51 PM
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lol I guess I should have read this yesterday. I went ahead and dropped another 500 on BP today to bring my total to $1083 invested for my 31 shares. Right now I am down 8.73% on the investment. I believe it will come back to around $60 a share in 4 years or less for an average return of around 25% per year.

It may be wishful thinking on my part but I still feel this is a good play. I would think about buying more shares but $1000 is my maximum per individual company. I keep 1/3 of my money in cash, 1/3 in individual stocks and 1/3 in mutual funds.

Member Avatar georcole (39.62) Submitted: 6/22/2010 10:18:35 AM
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I think that it is a good play. After this oil spill plays out, BP will once again be doing fine and will reinstate the dividend. Since you got in at a significantly lower price than I did, I applaud you. Just two months ago they were worth about $160B. This is a very big overreaction. I'm not saying that what happened isn't horrible, but in a dollars and cents way, this is giving people an opportunity to get in on a big, profitable company very cheaply (p/e of around 5).

I do not have a strict method for asset allocation. When I see a stock that I like and feel strongly about, I take some cash and buy. I only use mutual funds in my 401(k) because that and cash are all that are available to me. As far as my 401(k) is concerned, I have been known to watch the market go up strong a couple days in a row and then take everything out of the market and put it into cash. When, over the next day ot two, the market goes down, I will then buy back in at a lower price so therefore get more shares. I had lots of fun doing this in the 1990's. I actually had two other people that had me doing this with their 401(k)'s. Another wanted me to, but he was too close to retirement, and I was afraid that if I made a mistake, he might not be too happy. I now have a new job as opposed to then and this 401(k) is not so friendly towards me doing those types of trades, so I had to stop.

Member Avatar colddrink73 (87.98) Submitted: 7/12/2010 10:33:12 AM
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Ok so on here I am still in the red but in the real world since I was able to double my play and cut my losses by picking up more shares for less I am showing a 3.27% profit today with shares at $35.87. I think things are going to be looking up but I do not like the talk of BP getting out of Alaska.

Member Avatar colddrink73 (87.98) Submitted: 7/26/2010 11:23:01 AM
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so here we are all week BP went up because they were not going to get rid of the CEO now it is going up because of rumors they are getting a new CEO. What this means for BP... UM.... BP goes up DUH. If you do not own this stock you have missed out on some large gains this is going up up up from here....as long as the cap holds....and the new well works....and there are no more leaks. Well you get the point.

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