Before the oil spill BP was a much-tipped stock for good reason. If it were a country it would rank in the top 30 in the world thanks to its $250bn annual revenues. It was also a reliable dividend payer, which has been something of a rarity of late.
The disaster has seen its Replica Thomas wylde handbags share price fall by more than 35pc in a little over a month and last week, Charles Stanley, the stockbrokers downgraded the shares from a buy to a hold. In a broker's note it said: "Although we believe that BP has the capacity to survive this crisis, in the light of the ongoing risks and the threat to the dividend, we move our recommendation to hold."
But as the week drew to an end many investors began to believe that the steep fall in BP's share price has opened a buying opportunity.
According to TD Waterhouse, a leading UK stockbroker, BP was the most popular bought share last week. "Our customers took advantage of discounted BP stock with its shares accounting for 34pc of the week's top 10 buys. BP Replica Hermes Handbags buys outnumbered sells by almost four to one," said Angus Rigby, chief executive, TD Waterhouse.
Experts are not surprised that many investors think they are picking up a bargain. Hugh Sergeant, head of UK equities, River and Mercantile Asset Management, said that he believes the recent fall is opening up a buying opportunity: "It is the thirdlargest listed oil company in the world, with 6pc global share, and its debt is AA rated. I suspect longer-term investors are buying BP shares."
Breitling Replica WatchesDespite the optimism, investors might want to note that credit ratings agencies Fitch and Moody's downgraded BP's rating and said they may downgrade it again if the situation in the Gulf of Mexico worsens. Colin McLean, of SVM Asset Management, warned: "The dividend will continue, but be cut. A quarter or a third is quite possible."
Wow gold!:
Wow gold
Wow gold
