Whotme has raised a very interesting point, for once.
When the case is out of the way, we will be ripe for takeover at current SPs, or even at 500p kind of levels. If we shell out another say $20 billion, the high end of the the scale, then takeover will be massively attractive for Exxon, Shell, or any of the big hitters. Our PE ratio is currently 11, which in short means that BP is massively profitable for its value, ie, is a fantastic investment, and gives a great return on its worth. If the price falls to 400p, that PE rises to a staggering 12, which for a blue chip of our size, is awesome. If we go to 500p, then its still 10. Exxons PE is only 9. Chevrons is 8.8. Shells is 7.7. The mighty Apple is 'only' 9.7. So, even at 500p and a PE of 10, BP is a cracking investment for any takeover suitor. Break the company up, and our assets are worth far more than their combined value too.
So yes, either way, based on our earnings, BP will be a very attractive takeover target for anything less than 650p type levels.
BP is making more cash per $ of market cap, than any supermajor in the world. Fact. You like that Whome?
45p profit per share, plus another circa 45p in divis, so not bad for a nailed on winning investment, to supplement the risky part of the portfolio. So about 20% in 2.5 years. Not bad eh really, for what was always a winner over the long term.
And a takeover? Lovely, yes please. 600p+ a share then, or if the SP tanks to 350p a share, then 500p for takeover! Lovely. But then, companies get taken over for the current SP, in your twisted mind? Muppet. If BP stays at 450p AFTER the case, then takeover is definitely on the cards. It wont happen with such a heavy liability over our heads though. Imagine if GN wasnt already pretty much priced in eh?
yes I feel you ... Esso, Gulf Oil, Exxon, Shell, and ExxonMobil all feel it too ... they can all afford to buy BP ... Obama will love it ... no loss of jobs, more tax bucks in the U.S... so watch for an sp down by ~30% on news ... what have you made in 3 years, 25-27p/share? get out now ...
Don't be naive mate. BP is best mates with world Governments, as oil IS politics, power, and money. End of story. Oil companies are not just companies, they are ingrained into Governments. Tony Hayward used to play golf with George Bush. Wars start over oil. Ask Saddam and Gadaffi. BP will be made to cough up for public perception, and also the Governments public credility, but ultimately, the US have no interest in all in stiffing BP, losing American jobs, affecting the American economy in a bad way, or in short, busting BP, as mindless puppets like you seem to think will happen. It wont. BP are getting this whole thing put to bed for 12 billion max. Youll see. That number will be about what they've said on dividends alone since all this started, and it will be paying in instalments over years.
The judge will know what's good for him mate. Those 2 lads who have been put in the dock later on, who BP, the Feds, and everybody else, will blame them for the accident, not BP as a company. They will go down for 10 years, their families will be well looked after financially, and they will probably have good jobs to walk back into after that...... then everything will be forgotten in a couple of years. The Judge knows where his interests lie, and whose side the law is on. The law is green and yellow, shaped as a circle mate. Theres 2 things you can do about it. Nothing, or like it.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.