By Malcolm Stacey | Wednesday 5 July 2017
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello Share Swiggers. I had a lot of money invested in BP (BP.) shares and was happy as a pig in muck with a galloping share price and juicy dividends. But that was before the big leak in the Gulf of Mexico, followed by a crash in the oil price.
I was too slow, as usual, to sell the lot and then re-invest at the bottom. Instead, I bought more stock straight away - and have been topping up ever since.
The only consolation is that the dividends have kept rolling in. Though at one point the president of the USA had the temerity to try and stop those happy pay-outs in a fit of pique related to the massive oil leak that wouldn’t dry up.
I still hold all my BP shares, though they rarely seem to ease through my break-even point at around a fiver a throw. The shares are only 450p as I write.
For the last few years, BP has been struggling for shareholder value. Barclay’s share analysts has also noticed this effort is coming off. So the bank now has a tasty target for BP shares of 675p.
The fact is that the company is now run far more smoothly than it used to be. And though more legal bombshells could still fall after the Gulf of Mexico tragedy, the possibility has already been factored into the share price. That is as far as we can tell - given the greediness of American compensation seekers.
Another thing to bear in mind is that renewable energy, like wind, waves and sun, is at last beginning to threatened oil sales. But BP has been aware of that for some time and has itself cultivated a big interest in renewable energy. It’s now the biggest player in the alternative energy game among its peers
There is no doubt, gang, that BP’s share price has been a bummer. That will change, I fancy, but until it does, buyers of the share will still have a useful dividend coming in.
To spend in the in the Punter’s Return.
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