I don't think I'm ready to invest in BP yet

[Badger]

This is about a week old so I don't know if this has been discussed. A journalism group called ProPublica obtained a document from BP internal maintenance that states 148 BP pipelines on the Alaska north slope are severly corroded and could easily rupture. According to BP workers many of the walls are worn to within a few thousands of an inch of bursting. They also say that the fireand gas warning systems are unreliable and that some oil and waste holding tanks are on the verge of collapse.
Extensive corrosion threatens BP pipelines in Alaska, risking explosions, spills

Would anyone consider this to be a good reason/time to invest in an oil company other than BP?

 

[ERD50]

Here is how I look at it - generically:

If bad news is out on company XYZ, the stock price drops - that might be a GOOD time to buy, right (buy low, sell high)? The risks are now known.

So you buy company ABC instead at a higher price. Next week, THEY get bad news that was unknown when you bought and their stock drops. Oooops!

To my thinking, bad news or good news has no effect on my buying decision, because the market has already reacted to that news. Too late for me to profit from it or protect myself. What I might be able to do, is estimate if that reaction is under or over done, and invest accordingly. There is the opportunity, IMO - if you can read the tea leaves.

-ERD50

 

[dgoldenz]

I bought in on BP while everyone else was running away, it's been a pretty good decision thus far.

 

[clifp]

I wrote Jan 35 puts on BP during the crisis, I am reasonably sure that they will expire worthless. In truth, if I knew what a screwed up company culture they had I doubt I would have written them.

 

[Ed_The_Gypsy]

I bought a little BP when it was down. Not adding more. Waiting for developments...and reinstatement of the dividend in 1Q11.

 

[Brat]

The internal erosion of the Alaska pipeline has been known for years. There is grit in crude that erodes the pipe. The question is whether or not there is enough ROI going forward to replace it. As I recall BP isn't the only investor in the line.

 

[ronocnikral]

i think there are going to be a few BP workers looking for a job. but maybe that is what they wanted.

those with journalism degrees spinning doom and gloom on complex technical subject matter. no conclusion can be drawn from this dribble. but yes, BP is a train wreck right now, and has been for many years.

i leave my money in big mutual funds--my megacorp's stock included, which i think was referred to as..."an oil company other than BP."