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BP, which lost its first deal to drill for oil in Russia's Arctic to Exxon (XOM), tried to...

BP, which lost its first deal to drill for oil in Russia's Arctic to Exxon (XOM), tried to negotiate a new deal with Rosneft and was again beaten to the punch by XOM in winning access to the Arctic Laptev Sea fields, Reuters reports. BP thus has been left a bystander in the rush for Arctic deals, and all but five of 30 Arctic license areas held by Rosneft have been parceled out in ventures with other firms.
Comments (4)
  • Old Trader
    , contributor
    Comments (5726) | Send Message
     
    It certainly appears that BP remains something of a "value trap" for unwary investors.
    4 Mar 2013, 04:59 PM Reply Like
  • Polaris1
    , contributor
    Comments (22) | Send Message
     
    BP being a 18.5% stakeholder (after the TNK-BP Deal) in Rosneft should benefit either way. A oil company of this size trading close to book value seems to me like a good deal and may be ripe for another company to acquire it or merge. Looking forward to the court case ending to see the true value of BP.

     

    I am long BP
    4 Mar 2013, 06:02 PM Reply Like
  • Disturber
    , contributor
    Comments (172) | Send Message
     
    In my mind BP is an excellent buy right now and I am adding to a substantial position. BP has the best lawyers that money can buy and they have evaluated the risks of continuing the present litigation and have decided to go ahead. I am a vet of hundreds of court cases and I know that there is always an unpredictable element. However, the govt and the other plaintiffs offered a $16B deal and BP turned it down. That has to reflect a very careful analysis of the risks of going to judgment. If BP gets hammered, the stock might fall to around 36, but it will certainly recover that lost ground over six months or so. The dividend acts as a cushion against a greater fall. On the other hand, if the result of the trial is in the $4 to $6 billion range, this stock will move up strongly and should hit $60 within a year or so. BP is an excellent company with lots of great prospects. I like the dividend and I like the prospects.

     

    Disturber
    4 Mar 2013, 10:03 PM Reply Like
  • Old Trader
    , contributor
    Comments (5726) | Send Message
     
    Disturber,

     

    While I'll defer to your legal expertise (I have none, in particular), from looking at the daily chart, even $45 within a year would be an outstanding performance.
    5 Mar 2013, 10:22 AM Reply Like
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