BP-- A POTENTIAL GEM to be picked ?? It falls to its 14 years LOW at $ 29.20 ??

BP, in the midst of further Lawsuits and new Penalties treats from US regulators, Plunged to its 14 year low at $29.20  in NYSE on  Wed Close.


One will wonder whether BP will be bankrupt soon  or the next Take-Over Target . Grave Concern over its future resulted in its Heavy SELL DOWN by Investors.

Here’s an interesting excerpt from Motley:-

Estimates on how much the spill will cost vary greatly, ranging from lowball numbers in the $3 billion range all the way up to $25 billion or even $30 billion. When considering these hefty tabs, though, investors need to remember that BP has only a 65% interest in the oil field, with Anadarko Petroleum (APC) and Mitsui owning the rest. Driller Transocean (RIG), services provider Halliburton (HAL), and blowout-preventer manufacturer Cameron International (CAM) may also end up on the hook for part of the costs.

In a nutshell, the author reasons that BP’s recent stock price hit (down 50 percent) as well as its massive 9 percent dividend (on a trailing basis) justifies the risk. He then goes on to say that BP is in a reasonably good cash position to cover claims and to borrow if necessary.

Thousands of Britons are invested in the British oil giant through pension funds -- analysts estimate that about 1 pound in every 7 pounds paid in dividends to British pension funds comes from BP.

Investors are eager for the crisis to be resolved. BP is a major player on the FTSE 100, London's main stock index, meaning that blows to its share price have significant effects on portfolios designed to track the index's performance, such as certain pension funds and insurance policies. The National Association of Pension Funds estimates that BP shares represent 1.5 percent of the total assets of pension funds in the United Kingdom.

So BP can also be classified as a Too Big Company To Fail Category in UK

Having said that,, BP fundamentals is still Rock Solid , and the only uncertainty lies in its incoming  Lawsuits and penalties  imposed by US authourity. Some details on WED trading is   listed  below:below :--

BP p.l.c. Common Stock

(NYSE: BP)

After Hours: 29.45  0.25 (0.86%) 7:59PM EDT

Last Trade:	29.20
Trade Time:	4:00PM EDT
Change:	5.48 (15.80%)
Prev Close:	34.68
Open:	33.96
Bid:	29.44 x 100
Ask:	29.45 x 2400
1y Target Est:	51.76

Day's Range:	29.00 - 34.45
52wk Range:	29.00 - 62.38
Volume:	240,808,467
Avg Vol (3m):	29,050,500
Market Cap:	91.42B
P/E (ttm):	4.59
EPS (ttm):	6.36
Div & Yield:	3.36 (9.00%)

To get back to the main point, BP share price has plunged from its high $62.50(April, 2010) to $29.20 on 09 June  2010 Closing (NYSE), added with the proposed 9% dividend payout,, I would suggest to BUY and accumulate this stock gradually as the DOWNWARD momentum with  high volume may drift down the stock price lower. Technicals indicate severe Oversold and may persist in the Bearish zone for some time. 

Do Buy CALL Options  TO PROTECT  ITS Downward RISK when BUYING  BP stocks

The price chart for BP  is as below:-

HAPPY TRADING