British Petroleum $BP is worthless. It may trade for 2-3 more years and even rally now that I have blogged my opinion (no position), but stop the insanity.
The American taxpayer owns it. Figures. No upside, all the downside.
My dog likes to dig holes and I am running around my backyard of my rental home filling them in. I have also set up a $40 cleanup fund for all the restaurants whose toilet seats I have peed on. You just can’t be too careful now that there is a small hole in the center of the earth. Protect your balance sheet people.
Back to $BP…for 99.9 percent of investors, there is no reason to do involve yourself with the company other than to send money to the clean-up efforts. If you have a 401k, your shitty mutual fund manager already owns the stock and is buying more. The good news is he did the same thing with homebuilding stocks.
My pal ‘The Fly ‘ sums it up well:
If you’re buying BP, you might as well cop some “jumbo” with that and smoke it up while you invest. That fucking stock is heading “Titanic” in a matter of 1 months time, no floating door included. Sure, you can “take a gamble” and hope that the news doesn’t hit when you are long. However, more often than not, plans such as that fail in spectacular fashion.
Folks, BP is destroying the entire Southern coastline of the Unites Steaks of America. ROFL. And you want to go long? That stock is going to $20, then $10, in my estimation. I will buy it then, as a form of BRITISH LOTTERY.
Yep.
We are a charitable nation…Fannie Mae $FNM (delisted and worthless), Freddie Mac $FRE (same) and Shittyank $C (oh so close) have pledged millions to the cleanup effort. That’s wierd seeing they are worth less than my dog’s turds. I too hereby pledge $1 bazillion to Green Peace. I shall tweet it and it will be fact.
Comical…yet sad.
oh how amusing. you are indeed so comical… not. I’ll put my money if the “yet sad” line. derh.
welcome to poverty and dumb investing. in fact i hope you are partically right so the next pone breaks you worse.
smart money in, dumb money (you) out
wow…genius. leave a real name so we can check back in and srgue in 6 months.
oh how amusing. you are indeed so comical… not. I'll put my money if the “yet sad” line. derh.
I respectfully disagree. lemme talk my position.
To keep it Brief – BP sells the most coveted product in the world and has done so for quite some time. The American courts are notoriously slow. They made 17 Billion this year. They have a lot of lawyers. They are British. British are allies.
I bought a bunch average 33$. Then sold it for a small loss and started selling puts to capture some vol/theta. Then if the stock sits for two years and they reduce/slsh dividends i gets paid. Its just like buying the equity in terms of risk, and time is on my side…
New way to lose money.
thx for at least respectfully disagreeing. its what makes markets. hope u
win.
Scharfy, everyone is entitled to his own opinion. With that said, allow me to share what do I think on your BP position. There are 2 simple questions to be asked in your case:
1. What is the best case scenario? Under the best case scenario BP survives and doubles from here in the next 10 years, during which it will have to pay hundreds of billion of dollars for the damages it has caused. An upside potential of 100% in 10 years equals about 7% per year. Has the world run out of stocks that could deliver much more than 7% annually without the existing risk of having to file for bankruptcy? There are so many other stocks. Real leaders that are going to grow. Doesn’t it make sense to focus on them?
2. What is the worst case scenario? BP files for bankruptcy. Considering you are short gamma, you will be wiped out unless you act quick to cut your losses. BP is not a value investment. It is not even a lottery ticket, because the potential reward is much less that the potential loss.
I realize that my words are not going to change your mind. Such is human nature. We learn best from our mistakes if we manage to survive from them. With that said, I wish you good luck.
smart money in, dumb money (you) out
I respectfully disagree. lemme talk my position.
To keep it Brief – BP sells the most coveted product in the world and has done so for quite some time. The American courts are notoriously slow. They made 17 Billion this year. They have a lot of lawyers. They are British. British are allies.
I bought a bunch average 33$. Then sold it for a small loss and started selling puts to capture some vol/theta. Then if the stock sits for two years and they reduce/slsh dividends i gets paid. Its just like buying the equity in terms of risk, and time is on my side…
New way to lose money.
thx for at least respectfully disagreeing. its what makes markets. hope u
win.
Scharfy, everyone is entitled to his own opinion. With that said, allow me to share what do I think on your BP position. There are 2 simple questions to be asked in your case:
1. What is the best case scenario? Under the best case scenario BP survives and doubles from here in the next 10 years, during which it will have to pay hundreds of billion of dollars for the damages it has caused. An upside potential of 100% in 10 years equals about 7% per year. Has the world run out of stocks that could deliver much more than 7% annually without the existing risk of having to file for bankruptcy? There are so many other stocks. Real leaders that are going to grow. Doesn't it make sense to focus on them?
2. What is the worst case scenario? BP files for bankruptcy. Considering you are short gamma, you will be wiped out unless you act quick to cut your losses. BP is not a value investment. It is not even a lottery ticket, because the potential reward is much less that the potential loss.
I realize that my words are not going to change your mind. Such is human nature. We learn best from our mistakes if we manage to survive from them. With that said, I wish you good luck.
I’m not buying BP here, but I don’t think it’s going to go bust. I think a better analogy for it might not be Fannie Mae, but Philip Morris. Remember when Philip Morris and the other big tobacco companies were the most hated companies in America, and the government was going after them? At the time, some thought the federal government was going to crush them, but instead, it just settled for a bigger piece of the action.
That seems to be where things are going with BP too, given Obama’s comments earlier this week about wanting it to remain ‘strong and viable’ (i.e., so it can keep paying off claims). Nevertheless, your friend Gregor made a key point in your recent interview with him, when he noted that there really isn’t any clarity about BP’s ultimate liability yet.
I'm not buying BP here, but I don't think it's going to go bust. I think a better analogy for it might not be Fannie Mae, but Philip Morris. Remember when Philip Morris and the other big tobacco companies were the most hated companies in America, and the government was going after them? At the time, some thought the federal government was going to crush them, but instead, it just settled for a bigger piece of the action.
That seems to be where things are going with BP too, given Obama's comments earlier this week about wanting it to remain 'strong and viable' (i.e., so it can keep paying off claims). Nevertheless, your friend Gregor made a key point in your recent interview with him, when he noted that there really isn't any clarity about BP's ultimate liability yet.
howard you fail at being funny. leave comedy to the experts
congrats on you nightmare long $bp position today
howard you fail at being funny. leave comedy to the experts
BP doesn’t stand for British Petrolium.
BP doesn't stand for British Petrolium.
Poor attempt at humor. No actually analysis. Lost some respect for Altucher for recommeding reading this
histoiry is my analysis. it repeats itself. best case, small upside. but good luck of course. i too have lost respect for james linking to me for bring peoople like you here
Poor attempt at humor. No actually analysis. Lost some respect for Altucher for recommeding reading this
congrats on you nightmare long $bp position today
welcome to poverty and dumb investing. in fact i hope you are partically right so the next pone breaks you worse.
histoiry is my analysis. it repeats itself. best case, small upside. but good luck of course. i too have lost respect for james linking to me for bring peoople like you here
wow…genius. leave a real name so we can check back in and srgue in 6 months.
Yeah yeah ,This XX is the most popular this year!It is a necessity for the chaoshan people! I can recommend a store.I have lots of experiences there,and just bought several pieces yesterday,.The shop has all kinds of XX in various pattern, and several models that cant be find on the market. adidas arenas Signature
There were many friends have hobbies of tourism! I am also one! What XX do you usually wear when going out? Recently I bought a set of XX, how do you like them? Nike Kobe Zoom 81 Team