bp stock currently bearish but getting very oversold - oil spill pads
BP plc (NYSE:BP)
It is a fully integrated oil and gas company that provides oil, lubricants and petrochemical products to its global customers from its numerous oil wells and drilling around the world.
BP is mainly engaged in upstream exploration and production, as well as downstream refining and marketing.
The exploration and production department is responsible for oil and gas exploration, oil and gas field development, transit, storage, processing and sales of natural gas.
The refining and marketing department is responsible for the refining manufacturing, transportation and marketing of crude oil, petrochemical products and related products.
BP has been affected by the 2010 Deep Horizon oil spill, which left the company with huge compensation bills and expensive cleaning costs
Upstream of the Gulf of Mexico.
BP's share price showed strong support around $41.
Resistance around $36 and $42. 18.
The stock closed at $41. On Friday [July 5, 2013]
End of Business. The 52-
The stock has a weekly high of $45. 45 and 52-
The weekly low was $39. 13.
At present, the stock shows a bearish signal.
If you're an investor looking for a hedge fund on BP's stock, go to the $42 insurance phone in September 13.
A net debit of about $40. 36.
This is also an interruption of trade.
Even share price.
There are 81 phones with covers-
A three-day period was provided for investors.
Downward protection of 07% and 4.
06% the annualized rate of return specified is 18.
31% yield (
For the purpose of comparison).
If you choose lower
Hedge the cost of BP's stock and use it for a longer period of time
A regular call option, not a covered call stock purchase.
Look at the $33 in January 15.
00 call and sell at $42 on September 13.
00 call, which lets you borrow $7 in total. 82.
81 of this deal-
Life of the day and provide you with 1.
Downward protection of 97% and 15.
09% distribution rate (
68% annualized rate of return for comparison).
The current dividend yield of BP shares is 5. 16%.
BP's stock has become very oversold in recent times.
You can get the RSI from the stock (
Relative Strength Index)
At 27. 7.
RSI is calculated in a scale of 0-0100.
RSI below 30 means the stock is oversold.
BP's RSI means that the stock is oversold, which is just a matter of time, and a serious sales cycle will run out of itself.
Bullish investors can start looking for entry points for BP stock buyers.
The bear market of this stock makes it an ideal value stock with a price-earnings ratio of only 5.
Compared with Exxon oil, the main competitor (NYSE:XOM)
Trading at a price-earnings ratio of 9.
32 and Chevron Corporation (NYSE:CVX)
Trading at a price-earnings ratio of 9. 11.
Here is a snapshot of BP's recent stock trend: BP's market performance has improved, and BP's financial performance of 2013 in the first quarter has improved compared with 2012.
The potential replacement cost profit is $4.
2 billion more than last year's $3. 9 million. Operating cash-
Compared to $3 in the first quarter, traffic for the quarter was $4 billion. 4 billion.
The company paid a dividend of $0. 09 per share.
BP sold its stake in TNK.
BP has been aggressively pursuing a $8 billion stock repurchase program.
The stock repurchase plan is to make up for the company's asset base, its month-
The annual withdrawal plan.
Stock repurchase program is expected to last 12-18 months.
The company will keep the remaining cash after buying its own shares to reduce net debt and maintain a strong balance sheet.
After adjusting TNK, BP's upstream business grew 4%
Compared with the same period last year, BP divestment plan.
BP's major projects in the North Sea and Angola have also contributed significantly to the company's development.
Basic production increased by 2% compared with the same period last year.
The downstream business also benefits from good operating performance, including more than 95% of refinery supply and a good refining environment in the United States. S. Mid-West.
In addition to TNK and Rosneft, total oil and gas production for the quarter was 2.
Oil equivalent of 33 million barrels per day.
If the Russian oil company's trading is included, BP's oil and gas production will increase to 3 million barrels of oil equivalent per day.
Due to the planned seasonal activity turnover, production is expected to decline in the second quarter, which is mainly concentrated in high
Margin assets in the North Sea and Gulf of Mexico.
Here are the trends in BP's performance over the past few years.
The chart below provides a comparison between BP and its major competitors in the oil and gas industry.
BP's main focus is on its weak free cash flow.
This is unlikely to support the company's future dividend payments unless it becomes better.
The slowdown in BP's demand for global oil products has not been spared, and global demand for oil products has only increased by 1. 8% in 2012 -
Far below 10-
Average annual growth 2. 6%.
Emerging economies in China and India account for 90% of global oil demand growth.
The 2010-meter-deep Horizon oil spill continues to erode BP's profitability.
BP has set up a $20 billion fund to deal with compensation and finance clean energy.
Upstream of the Gulf of Mexico, but this may be lower than the required number.
If BP is found guilty of gross negligence by the court, it may pay an astonishing fine of $17 billion, not to mention, in addition to $8, the company may also have to reach more settlements with the victims of the fiasco.
5 billion pounds were paid last year.
This could hit the company hard in the next quarter. Look forward.
BP program director 75-
80% of the company's capital expenditures are for upstream projects, mainly in Angola, the North Sea, Azerbaijan and the Gulf of Mexico, which has more than 40 projects. Recently-
The tax reforms passed made drilling on Alaska's North Slope more attractive, with BP and other oil companies such as ConocoPhillips (NYSE:COP)
Exxon plans to invest $1 billion in the region over the next five years.
Revenue is expected to grow strongly by 40% by the end of this year.
The dividend yield of more than 5% and 5.
4 P/E valuation makes it a great stock, although there are signs of bearish in the short term, if the company is sentenced to serious negligence in the Deep Horizon oil spill, it may be subject
Shares in BP
Disclosure: I do not have a position in any of the stocks mentioned, nor do I have a plan to start any position in the next 72 hours.
This article was written by myself and expressed my views.
I received no compensation (
In addition to Seeking Alpha).
I have no business relationship with any stock company mentioned in this article.