Worst case they just let the US subsidiary declare bankruptcy. That still leaves the substantial non-US operations intact, and they are worth a lot more than $0.
Interesting to note that two weeks after the Exxon Valdez spill, Exxon stock only dipped 4% and was back up to it's pre-spill price a month afterward. Go zoom in on late March '89 and check the stock price; you can't even see the spill on the chart. Bush the Elder beating Dukakis in the Nov '88 election caused a bigger two week decline in Exxon stock price than the Valdez spill.
If the cap thing works (meaning capturing 90%+ of the oil coming out) then the stock will rally from here. After a series of failed attempts to stop the flow the stock seems to have priced in the assumption that this too will fail and the only hope is the relief wells. If the cap also fails to substantially stem the flow then maybe it drops a little further but the potential upside here is much greater than the potential downside (IMO) As others have stated, BP generates tons of money and they can handle the cleanup and settlement costs that have been estimated - and those costs will be paid over time. Remember that Exxon got out of paying the bulk of the punitive damages in the Valdez case and they (Exxon) allowed a known drunk to captain an oil tanker. Do you think that BP behavior in this case is more negligent, esp. considering the other players that can be pointed to (Transocean) for blame-sharing? I'm not saying that BP wont pay 100% of the cleanup/claims but the idea that they will be hit with an additional huge punitive penalty doesn't seem likely based on the way the Exxon case played out.
...And just to think BP did this deliberately...just to lose thousands of gallons per day...such waste Their public relations people should be shoved down the hole to block the leak... ...followed by Obama and his minions...no better.. NiN
I am crying. Part of my inheritance is in BP, and my Dad only sells stock every few years, and he sold some of his Kohls last year, so he probably won't sell his BP. ROFCMAO...C=crying...LOL, oh well
If you want to go to the beach in Southern Ca and especially in the Santa Barbara area you will experiencce oil and tar on the beaches which gets all over. If you want to surf or go in the water in so CAL it is a part of the experience. douche
The reason for BP's exponential decline on Wednesday was due to the drudgereport.com's posting of this article: "Month Before They Declare Chapter 11". The posting time of the article was June 9, 1:31 pm ET. http://money.cnn.com/2010/06/09/news/companies/simmons_gulf_oil_spill.fortune/index.htm
Nobody has to ask you - it has always been precedent. If you go target shooting in an crowded urban area, with no intent to hurt anyone, and wind up killing a passerby, is that a crime? If you think it would be fun to drop garbage on cars passing under a highway bridge, with no intent to kill anyone, and you cause a deadly accident, is that a crime? There are some activities that are so inherently reckless that doing them, even without intent to harm, is criminal. We don't know yet if that is the case with BP's procedures here. But in the end it won't matter - the damage here is so gigantic that the politics will dictate. They'll try to soft-pedal it goldman style, putting on a big meaningless media show for now, but if BP lets this go on another 2 months at this flowrate even the most corrupt of the scum in congress will have to turn on them.