Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.

Buy BP at 448p

By Robert Sutherland Smith

4 February 2015 02:38

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The New Year’s rapid increase in the BP (BP.) share price has been testimony to some old market truths; buy for book value and buy when the last man has heard the bad news.

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Comments

alcira16247

4 February 2015, 04:07

Robert

Great analysis!

As ongoing concerns are resolved and oil prices recover and with a nice little bit of positive speculation, share price will swifly start climbing towards 600 pence, in my opinion. In fact, given how well the SP has held up despite the sectors recent woes…… would I be wrong in detecting market sentiment towards BP is becoming much more positive, already?

A great safe play on oil futures with a meaty dividend paid quarterly. What more can you ask?
J P Spaghetti

4 February 2015, 04:19

“No bit of technology like a submarine echo finder to tell you how far you are from the sea bed of ultimate value.”

Ooh – I liked that bit!
Fullerbull

4 February 2015, 13:07

Alcira16247, Quote: “…share price will swiftly start climbing towards 600 pence, in my opinion.”
Suggest you go a bit steady from here! BP management have already stated that things are going to get difficult in the next little while, as the oil price is very volatile and likely to fall before it rises. To that end they are hacking back on capital expenditure and also expect that the Russian contribution will fall further. The Gulf oil spill is also not yet totally resolved and further costs will probably accrue. All of this suggests a less bullish view of the share price, though it may be underpinned by a potential take-over from Exxon – but then that is pretty speculative. I take the opposite view (and hence the existence of a market!) that the share price will drift back down over the next six months – in which case I shall be a buyer.