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But how much is the purchase price compared to an equivalent diesel? How much is a new battery when that is needed? What's the range compared to the 800+ mile range of a diesel? How much depreciation is there in the first 5 yrs of the life of the car? What if there's a power cut during the night when you're recharging it? I could go on...
Thanks guys broadly we still need oil is the answer.
I bought a Merc EQC a few weeks ago - really pleased with it.
You get 100% write off against tax and the cost per mile on Economy 7 charging is less that 1/3 of petrol and diesel.
No congestion charge (worth around £24 per week to me).
Half the servicing costs - no ICE or Gearbox to look after
Over 5 years its cheaper than any equivalent ICE and the performance is better than any 3L petrol or diesel car.
8 year or 100k warranty on the batteries.
BP are heavily invested in the whole EV thing, they've got deals with most of the big EV manufacturers and are growing the EV network at their petrol stations quite rapidly.
I am a prime example of a potential EV buyer - I like the tech, I like the green credentials, and I like the low fuel costs.
But they are simply too expensive; even with government subsidies, you can buy so much more car from BMW or Audi for the same money, that it simply isn't worth it (to me anyway).
Prices will come doubtless come down, but not tomorrow, and petrol and diesel will stay at bargain prices for some time yet.
I reckon I might end up buying one in about 3 or 4 years time.....
Latpulldown,
Thanks. A sensible approach with which I concur. Whilst we can do little about the current volatility & nonsense playing out across markets, we can at least 100% control our own mindset, recognising that over time global economies tend to recover well. That's how it's always been, despite the greatest setbacks & any degree of panic. Eventually sentiment improves again & more buyers return.
I'll be glad to reduce my average over time to at least below 220 & hold on. It'll take time. No quick fix likely here. But that applies no less to other sectors. - GL.
Lat, agree with your assessment. Have added more under 203. We will see what happens. China is a huge consumer and will drive this higher in 2021. Now is the time to buy. There is a lot of oil in storage so will take time for oil price to rise more, but there is also a huge pent up demand for travel which will be released in 2021 with a vaccine roll out over the year. When this happens, these prices will have seemed a gift.
I have 2 EV's. One in the UK and one in France. If the ratio of EVs exceeded the combustion engine then the infrastructure would not be able to cope with the energy demand. Maybe if every user trickle charged their EV's but of course that takes many hours.
There are still large geographical areas of the planet without electricity,
Car manufacturers don't even standardize the type of chargers . Stupidity of the highest. Oil will be in demand for a very long time despite the impact it has on the planet.
jackdawson I wouldn't even have bothered with a reply.
I've just bought a few for Q3 results which I think might be better than some are speculating on.
If so then we should see a swift about turn.
I have BP as worth about £3.00 per share in the present state of the pandemic and with the current emphasis on keeping economies open for business.
It's not only that but all the recent reports in the press are of the Chinese economy ironically now powering ahead and growing again. It has to be said that as a nation they have massive demand for all things oil, right from the fuel in their cars all the way through to the derivatives that make the plastics in mobile phones etc etc.
Its also an educated investment that there will be a vaccine out there in the UK and elsewhere by the year end and we can all get back to full normality thereafter.
Upon which an 8% dividend will be a nice annual bonus.
You pays your money and you takes your chances and I might add some more.
Fortunately I am a patient investor.
Any thoughts on ,
if oil is still the energy for the future, in the next year/ decade will you drive an electric car , will you fly less , will the stuff filling your house be plastic from china bought here on a container ship.
"appleby - 100p would be absolutely crazy - agree, but it cannot be excluded if retail investors start panic..."
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Tacet,
Seeing successive new 25 year closing lows, with another yesterday, are frankly demoralising for most of us. At times there seems no end to the pessimism across this sector with new lockdowns further dampening economic activity.
However, whilst we know markets can be highly irrational for longer spells, they'd have to be extraordinarily so for BP to tank to those levels, as would presumably much else across most sectors. I think anywhere near 100 assumes that all dividends will be scrapped. Seems unlikely. Even now the yield is substantial.
To each their own. as they say. Your money, your call. But as long as BP pays a dividend, I'll be DRIP feeding my holding to reduce my 233+ average over time.
I'll review matters before 2022. By then, hopefully the current, foolish policies that damage wider economies & much of UK's markets will see a more sensible resolution. - GLA.
Lol maddmax
Don't engage IMO - stick to trading and BP with Tacet. For anything else, he gets his info from conspiracy youtube so he's one step from believing in the Mandela effect, the Earth is Flat and Birds are not Real.
Dinosaur industry...rather than wait for oil sector to recover in the next few years (or never), why not to buy sectors which perform well now. RR and BP have something in common - poor management team.
No its not common Flu its much more deadly than the common Flu.
No its not common Flu its much more deadly than the common Flu.
Torn,
Agree with what you say. I do think however the chance of a successful vaccine is pretty high compared to usual. Never before has there been as big an effort by numerous huge pharma companies to crack a vaccine and new technology has allowed new methods. If malariaor TB received the same attention and resources, they would be eradicated too. ATB
Oil futures is linked to Covid-19 resolution. I certainly agree with vaccines but the efficacy rate needs to be above 50% and adverse response incidence rate has to be no more than 1/150,000 people.
The situation for therapeutics is different as a patient has arrived in hospital. The tolerance on adverse incidents to the patient is around 2% in these circumstances but the efficacy has to be really high like 70%. Therapeutic trials can be decoded at an earlier stage between placebo and therapy if doctors are seeing some transformational responses on survival and far less morbidity. If the trial is cut short as the evidence of benefit is overwhelming, therapy can be introduced more quickly. At the present time a number of therapies are racing into stage 3 clinical trials and its quite possible that Covid-19 mortality can be reduced by a factor of 8 or more and deliver outcomes that are no different to influenza outbreaks. I strongly agree with Farrar's comment from the Wellcome Trust on Sunday that the pandemic will be manageable by March 2021. If less expensive testing can be made available for private testing say £60 instead of £175 this would open up quite a lot of air travel as well. The time to buy oil stocks is some time in Q4 and early Q1 of 2021. I suspect the bottom is in BP and Shell. It many bounce around current lows but could well move up in the coming weeks.
If I am correct we shall see higher lows being formed in a chart pattern. Thus far it is holding trues for Shell and we are waiting to see if BP will soon follow if it can stay above 200p.
https://www.telegraph.co.uk/business/2020/10/19/fossil-fuel-dinosaurs-may-still-have-life-yet/
AEP seems to believe oil majors still have a future.
Retail investors wont move this share only the big boys
Cant see this going to a pound , however sub 200p looks possible with corony 2 , everyone driving electric cars by the end of next week . Ships could be paddled by the newly unemployed to stop them getting idle and save fuel . You just need to think out the book guys .
As the II article suggests, there are now a number of technical indicators suggesting a reversal could be coming. The sellers drying up isn't hard to fathom - who is going to approve a large stock sale at these prices? As we head into winter, those brave enough to remain short will be getting twitchy as their position gets riskier.
Tacet, your angle is clear, but baseless comments comparing RR and BP, talk of RI's, BP at £1 etc, are just noise and not going to be taken seriously by 99% of the people that read this board.
tacet - I wasn't being silly. It was you that said " I am afraid that BP is heading the Rolls Royce way, let say to 100p, then an announcement of a RI etc" All I asked was for you to clarify on what basis you've made this statement.
The RR rights issue will raise around £2bn. BP have effectively raised more than that annually on the back of their dividend cut.
https://www.ii.co.uk/analysis-commentary/chart-week-are-oil-majors-really-buy-ii513848
Tacet, Doubt this very much. Comparing apples and oranges here. Just because RR was shorted does not mean every other company listed in the FTSE will be. Honestly let's ease off the wild speculation. If BP gets anywhere near that low it will be bought out.
I think RR and BP are completely different.
Clearly the aviation industry is in deep trouble, but BP is involved in so many areas, that although most are in some kind of downturn, it is a long way off being as bad as aviation.
Could there be a scenario where Shell buys BP or vice versa?
And exactly why is BP heading for £1 and a rights issue?