Is It Time To Invade BP Stock
A supporter writes in and asks if I could please present an update on BP. In the previous month I had a follower write in that wanted to go long BP at 40. I said no way. At the moment the stock trades at $34. I wish he followed my advise.
From a basic perspective BP is not a a buy and has not been one for several months now. Oil is a very unsafe substance. You are not even permitted to throw oil in your backyard or to even lob it in a trash can. You have to take old oil to a special licensed hazardous waste collection place to dispose of it. Oil causes disease. Oil has caused mutations in insects and animals. Oil is so toxic that it causes skin rashes and can damage the lungs just as a result of sucking in air.
There are going to be lawsuits against BP for the next 25 years. Many people are going to get millions of dollars in compensation against BP. Even the EPA is whispered to be looking on a upper limit fine against BP of $7,600 per barrel of oil leaked into the Gulf Of Mexico.
We can see BP split itself into a new business and permit the BP as we now know it, to smash into and blaze under the fiscal obligations they will have for the next 25 years. Why not have the bosses of BP get together to create a new oil company that will be untouchable and sheltered from any lawsuits and fines associated to the Gulf Of Mexico oil spill. They have in all probability already planned such a move.
This is only just beginning. I imagine BP to have to compensate hundreds of billions of dollars worth of damages.
From a stock chart viewpoint, BP has had nothing more than a strong rebound within a larger downtrend. Anyone needs only to look at the monthly chart to understand just how weak this most recent upward move in BP stock has been.
Approach BP like you would a date. Are you that desperate for a long play that you need to look at BP? You intend to tell me that you can't discover any better looking uptrending stocks in uptrending sectors to purchase? You need to find a superior stock screener if you just answered yes to that.
I understand. We both just can not seem to get over our own ego.
Every person likes the concept that they made a ton of money out of the BP tragedy by going long BP when everybody else was still hating BP. True? You, like Chuck Norris, were the only guy who had the audacity and the intellect to go long BP when everybody else was running in fear. You and you alone saw the chance that in actuality existed when BP sold off. You were the only gentleman in the room that was stylish enough and that truly understood the stock market good enough to buy BP right now.
Nearly all egotistical SOBs wash out of the market in less than 5 years. Do not be egotistical. The stock market is not the place to express your individuality or to try and prove that you are better than everybody else. That's a great way to lose all your money. The only logic for why to trade in the stock market is to make money. Everything else than that is folly.
In this video I give you my judgment on BP and everyone who says this stock is a good buy right now.
Article Source: FxTradingStock.com
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by: Jens Jackson
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Word Count: 615
Date: Wed, 14 Jul 2010
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