GM and BP...

[Radditz68]

I never have invested before, I usually just look up prices every now and then.. but I see GM is at .75 and bp is at a 20 year low of 37.16... I wonder if its time to gobble up a E-trade account and buy buy buy? Maybe I should wait for bp to go lower, I mean it will ony go up after the gulf mess.

[Adam Montana]

The question is "Will they plug the hole?"

If "yes", then eventually BP will start going back up... I'm buying some every week. BP has always been a strong company with amazing profits and this is a horrible tragedy - but I don't think it will kill the company.

GM, on the other hand... .75 might be a "bargain", but I don't have the faith in the company that I do in BP.

Just my opinion, of course. Good luck!

[fmfboy]

I never have invested before, I usually just look up prices every now and then.. but I see GM is at .75 and bp is at a 20 year low of 37.16... I wonder if its time to gobble up a E-trade account and buy buy buy? Maybe I should wait for bp to go lower, I mean it will ony go up after the gulf mess.

What was Bp's stock before the Gulf mess

[fmfboy]

The question is "Will they plug the hole?"

If "yes", then eventually BP will start going back up... I'm buying some every week. BP has always been a strong company with amazing profits and this is a horrible tragedy - but I don't think it will kill the company.

GM, on the other hand... .75 might be a "bargain", but I don't have the faith in the company that I do in BP.

Just my opinion, of course. Good luck!

What was Bp's stock before the Gulf mess

[Adam Montana]

What was Bp's stock before the Gulf mess

Around $60 I believe. It's hovering at less than half that lately. When the hole is plugged and people start buying it again, the price is going to go back up pretty quickly I think. People are scared that BP could file bankruptcy, and honestly - it's not out of the question. I just don't think it's going to happen.

Again, I haven't spent a ton of time analyzing it - I'm just giving my personal opinion. Feel free to thank me later or not, however it turns out.

[hot2bewe]

Ummm if you haven't looked lately GM is not even trading. It haulted at .75 cents and was converted into MTLQQ.PK, which is just a liquidation shell that is trading around .42 cents. They are also getting ready to do an IPO that they are trying to value at 70 bil. If they get the SEC to approve the new IPO before the govt is even fully paid back it would be a bigger Ponzi scheme then Madoff. So you won't really be able to buy GM till the new IPO and who knows what that will come out at, but chances are it will drop out of the gate. As faar as BP goes, thats like playing Russian Roulette. The 20 bil fund that has been set up is to BEGIN to cover damages and paybacks to gulf business and people. However this thing can turn real ugly. The cleanup costs are already around 3 bil and there is so much more to do. BP's gapup every morning for the last 3 days has gotten smaller and smaller from it's low of 26.75. We haven't even seen lawsuits come about and the people that will be filing lawsuits as a result of the methane problems. Now many forcasters are predicting oil sliding back into the 60's and maybe lower because of the economy slowing and overall demand. It is my belief we'll see teens on BP well before it recovers. Total costs of the cleanup and lawsuits are not looking anywhere between 50-100 bil. When you have that large of gap it's not good. Plus the volume on BP has been drying up signaling the heavy money makers have been pulling out. If you are going to buy BP be fully prepared to see your stock go down before it goes up. Things will be clearer after their first full qtr reporting with cleanup going on. Buying any stock is an investment and you are the only one that can truely make the choice. Always research the stock fully and never make a decesion based on what others say.

[Adam Montana]

Ummm if you haven't looked lately GM is not even trading. It haulted at .75 cents and was converted into MTLQQ.PK, which is just a liquidation shell that is trading around .42 cents. They are also getting ready to do an IPO that they are trying to value at 70 bil. If they get the SEC to approve the new IPO before the govt is even fully paid back it would be a bigger Ponzi scheme then Madoff. So you won't really be able to buy GM till the new IPO and who knows what that will come out at, but chances are it will drop out of the gate. As faar as BP goes, thats like playing Russian Roulette. The 20 bil fund that has been set up is to BEGIN to cover damages and paybacks to gulf business and people. However this thing can turn real ugly. The cleanup costs are already around 3 bil and there is so much more to do. BP's gapup every morning for the last 3 days has gotten smaller and smaller from it's low of 26.75. We haven't even seen lawsuits come about and the people that will be filing lawsuits as a result of the methane problems. Now many forcasters are predicting oil sliding back into the 60's and maybe lower because of the economy slowing and overall demand. It is my belief we'll see teens on BP well before it recovers. Total costs of the cleanup and lawsuits are not looking anywhere between 50-100 bil. When you have that large of gap it's not good. Plus the volume on BP has been drying up signaling the heavy money makers have been pulling out. If you are going to buy BP be fully prepared to see your stock go down before it goes up. Things will be clearer after their first full qtr reporting with cleanup going on. Buying any stock is an investment and you are the only one that can truely make the choice. Always research the stock fully and never make a decesion based on what others say.

Well said, + reps for that post!

This is the type of conversation I'd love to see more of in the Wall Street forum here.

Regarding GM - I had no desire to purchase it so I didn't even check the price or availablility. I think everything that happened with the company was a train wreck and everything we and they and them did to fix/mend/patch it was absolutely pathetic.

Regarding BP - I agree that it's going to go down before it goes up, which is why I'm buying it weekly instead of one lump purchase (dollar cost averaging simply because I don't know where the bottom is). Even though they are in for a rough road, I don't see them going bankrupt - so my stock purchases are a long term buy, not a short term buy. It comes down to one simple question: will the company file for bankruptcy?

I don't think they will, and that's where I take my position.

[hot2bewe]

Adam you may want to rethink your BP strategy, read the article,

http://finance.yahoo.com/news/Paper-Mideast-looking-at-apf-251771645.html?x=0&sec=topStories&pos=main&asset=&ccode=

A looming takeover would kill the stock and many of the Middle-East funds are restructuring. That's why I said to wait on a buy till more things surfaced,

[Adam Montana]

.... ahem. *cough*

[Adam Montana]

Not going to say "I told you so" here, but I just took a peek at my portfolio, and good old BP is still one of my favorite decisions.

S&P MAINTAINS HOLD RECOMMENDATION ON ADSS OF BP PLC

Thursday 12/16/2010 10:18 AM ET - Standard & Poor's Research Notes

As anticipated, the U.S. DOJ filed a civil lawsuit yesterday suing BP and eight others over the Macondo spill for $21B, independent of BP's $20B fund. These lawsuits are likely to take years to resolve and will require proof of gross negligence. We think diversifying into Russia or elsewhere is beginning to look attractive. We keep our hold opinion and our target price of $58, which assumes BP will operate in the U.S. We expect the shares to trade below our estimate of their underlying value until the U.S. government's position on BP's U.S. operations is determined.

I can't wait till the day comes and I can say "I TOLD YOU SO!!!!" about the DINAR.

[au-oilfutures]

Not going to say "I told you so" here, but I just took a peek at my portfolio, and good old BP is still one of my favorite decisions.

I can't wait till the day comes and I can say "I TOLD YOU SO!!!!" about the DINAR.

Buying BP was definitely a great value investment - although, no one knows how they are faring financially, and much of their move higher is based on the entire energy equity sector moving higher and just being way oversold.

Probably the best integrated energy is CVX, but it's too pricey now. The real curiosity about this group is whether the downstream side will continue to be a drag on their bottom line.