BP stock falling into the ABYSS

[Spectrism]

Nice drop just happened after an exuberant climb. Did some big news come out?


Ahhh... I think it is dividend concern. They historically have paid very well. I think that is about to end. How could they pay any dividends when they destroyed one third of the world?

[MNeagle]

yes, the dividend issue:

BP Investors Brace for Dividend Suspension .

Shares in BP PLC tumbled as much as 6% Wednesday as political pressure on the company over its handling of the Gulf of Mexico oil spill mounted and investors worried it might be forced to suspend its dividend.

BP shares fell to their lowest level in more than seven years, a day after President Barack Obama said that he would have fired BP Chief Executive Tony Hayward by now if he worked for him. They later recovered somewhat, closing down 4% in London.

The U.S. government's point man on the oil spill, Adm. Thad Allen, joined the chorus of criticism Wednesday, demanding BP provide more detail on how it's meeting damage claims from individuals and businesses impacted by the spill.

Shareholders are now increasingly bracing for the possibility that BP will be forced to reduce or even cancel its dividend, a key income source for investors and savers in the U.K.

Politicians in the U.S. say BP should be using all its resources to stop the spill and clean up the Gulf, not rewarding shareholders. In a research note Monday, Goldman Sachs analysts said they now expect BP to take a holiday on the dividend for the next two quarters, while uncertainties over damages remain high, and resume payments in the fourth quarter at a reduced rate. They peg the total cleanup and legal costs to BP at around $33 billion, though these might not fully materialize for a decade.


more: http://online.wsj.com/article/SB10001424052748704575304575296263469609340.html?m od=rss_whats_news_us_business

[Spectrism]

I am holding my put options a bit longer. They are July puts... maybe another day or two.... or three, if they keep dropping this beast.


Wow... under 32. I smell toasted beast.


Now under 31.... and dropping.