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Buy BP Shares now

Posted by John Bonar on 17.07.2010 13:25 | Published in Блог
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Buy BP Shares now

About six weeks ago Some Russian bankers I met wanted to know if they should buy BP shares. I urged caution as there was no waying of knowing how bad the situation was going to get for the company.

Today my advice is buy, buy, buy. The shares at 39% discount from their pre-Deepwater Horizon disaster high, are a bargain. The well appears to be capped, the relief wells are on time and on target and the company in a few short weeks will announce the sale of assets raising up to $20bn.

BP still has a long way to go, but the worst is over.

There are still battles to be foght in Washington where it seems everyone and anyone us gunning for BP but as Prime Minister David Cameron has promised to fight BP's corner when he meets President Barack Obama next week the tide is turning.

More importantly the clean up of the Gulf can now continue without the oil continuing to seep from the well onto the coastline.

A new chairman for BP is likely after the laclustre showing of Carl-Henrik Svanberg during the disaster. More regrettably it also looks as if Tony Hayward, BP's embattled Chief Executive will meet the fate that has been rolling towards him since Deepwater Horizone exploded on April 20.

Since Mr. Hayward's remuneration in salary and bonuses in 2009 was £3,158,000 it's hard to feel pity for him as he will undoubtedly get his life back, as he so ineptly wished in front of an ascerbic American press corps some weeks into the crisis.

 

John Bonar

John Bonar

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