I bought some BP, MKS and RR. near close of play Friday28 Nov 2021 15:28
Until a week or so's time we won't be able to say whether I did the right thing.
I bought BP. because Brent fell by around $10 which is fairly mad I think. BP. shares were down 7%.
First of all this new strain has just been detected and so has only been in existance for what... 4-6weeks?
Even if it turns out to spread fast and cause nasty illness we are a few months at minimum away from it having an effect on any economy. OK the airlines may suffer badly due to flight restrictions. China will I presume clamp down hard and sbuff it out if seeds there.
Is the demand for oil going to plummet in the next few days/weeks? I think no. Why would it?
And about the dividend:-
"On average, based on bp's current forecasts, at around $60 per barrel Brent and subject to the board's discretion each quarter, bp continues to expect to be able to deliver buybacks of around $1.0 billion per quarter and have capacity for an annual increase in the dividend per ordinary share of around 4% through 2025.".
Brent is $72 at the moment.
MKS I bought as sp fell 3% and I was looking tio buy in dip. Defensive share to boot.
RR. Was also looking to buy on weakness (maybe not expecting 11% drop!). Will have benefitted so far from airlines un mothballong aircraft and putting them back in the air. Also the small nuclear reactor research looks to be a future winner, possible for export all over the World (well countried that we can trust!). OK if omicron proves to be bad then RR. will suffer but we simply willl not know for 2-3 weeks.
I'm hald expecting the market to bounce tomorrow with shares that fell steeply recovering say 50% of fall by close. Then we will be uo and down as the facts about the new strain are coinfirmed.
All IMHO.
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