Is BP Stock a Good Investment?

By 5 Comments

I spend most of my investing energy focused on long-term, tax-advantaged investment options. But I can’t help but be curious about potential quick money makers like this one…

BP stock has lost about 50% of it’s value over the last 3 months. The Deepwater Horizon explosion and subsequent oil spill have sent the stock on a downward spiral. However, with the recent discussions and agreements with the US Government, the stock seems to have stabilized around $30, with some people saying that BP is now a buy.

What’s your take? Are their any active traders out there that are taking a calculated risk with BP stock? If so, I’d love to hear your analysis in the comments below.

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Last Edited: February 18, 2012 @ 1:51 pm
About Philip Taylor

Philip Taylor, aka "PT", is a husband and father of two. He created PT Money back in 2007 to share his thoughts on money and to meet others passionate about managing their finances. All the content on this blog is original, and created or edited by PT. Read more about Philip Taylor, and be sure to connect with him on Twitter, Facebook, or view the Philip Taylor+ Google profile.

5 comments
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mack
mack

Yes, BP is a great stock to invest in as for as long term goes. this is simply because the US goverment doesn't want to pay for BP's mistake, therefore they need BP to stay in business to generate cash to pay for the cleanup. BP is a oil giant and has over 8 billion in reserve cash. This company turns over a billion a quarter in profits. You will double your money in 10 years

Neil
Neil

Hi

I think there may be a good opportunity for some short-term profits by buying now and selling when (if?) the relief well that they are drilling finally stops the leak. Best to get out at this point as the eventual costs of compensation are hard to estimate.

Some people may have a problem with the morality of this....

Craig/FFB
Craig/FFB

I'm all for investing in a hurting company with good fundamentals but BP is too up in the air from me right now. And something doesn't feel right about owning a piece of a company that's done such damage.

Samer Forzley
Samer Forzley

At this point, its like going to the casino and putting your money on red at a roulette table. Big risk, but if you have money that you are willing to bet and not disrupt life if you lose it, then go for it, double or nothing from here on

bb
bb

They want fools to buy so they won't lose as much with their current positions. Even BP CEO doesn't know how much the penalty will cost him, who will know better?