Investors piled more money behind “buy” trades than “sell” ones in London since the April 20 rig explosion, according to so-called money flow data compiled by Bloomberg, even as the stock slumped to a 13-year low. By contrast, BP’s American depositary receipts have recorded a net $185 million outflow in New York, the data show.
As the worst oil spill in U.S. history spurs attacks from President Barack Obama and soils Florida’s beaches and the Louisiana marshlands, London investors are backing BP’s embattled chief executive officer, Tony Hayward. After a five- year string of accidents and deadly disasters at BP facilities, U.S. Representative Bart Stupak suggested last week its safety record could justify pulling the company’s operating permits in the U.S.
“There’s a feeling in the U.K. that BP has been singled out unfairly and that there’s long-term value in the stock,” said Iain Armstrong, an analyst at Brewin Dolphin Ltd., which oversees more than $31 billion in London and increased its BP holdings in May. “In the U.S., it’s a very emotive issue, and politicians are making it much more personal and vindictive. If you’re a U.S. fund manager and BP doesn’t manage to stop the leak, you’ve got a lot to answer for.”
Hayward drew criticism again this weekend after attending a yacht race off the south coast of England, watching sailboats on the Solent at a time when fishing in the Gulf of Mexico is curtailed because of BP’s spill.
‘“When people turn on the news they see this gusher pouring out,” said Ronald Sorenson, CEO of W.H. Reaves & Co. in Jersey City, New Jersey, which manages $1.6 billion in assets, including BP shares. “That puts a lot of pressure on advisers. Individual investors take this very personally.” Sorenson said he’s sold shares for individual investors since the spill began.
Biggest Loss
The London-listed stock is down 47 percent since the explosion on the Deepwater Horizon rig that killed 11 workers and started the leak on the seabed. The shares fell to a 13-year low of 342 pence on June 15, wiping about 60 billion pounds ($89 billion) off the company’s value. The ADR is down 45 percent this year, more than any other company in the 11-member CBOE Oil Index.
BP fell 2.2 percent in London today to 349.5 pence.
Money flow attempts to measure the capital moving in and out of a security by adding the value of higher, or uptick, trades and subtracting the value of downticks. As prices fall, money flows are usually negative, turning positive as prices rise. A divergence between money flow and price may signal a change in the trend.
“People in the U.K. are buying the stock, taking advantage of the discount” since the stock plunged, said Cleve Rueckert, an equity analyst at Birinyi’s firm. “But when a stock starts to slide like this, it’s hard to say when it will turn around.”
4 comentarios:
For the truth is not known whether fortunately or unfortunately know that oil is an important part as well as in our country and abroad represent to various factors, and speaking of oil know that federal investigators to file criminal charges against at least one company involved spill in the Gulf of Mexico, raising the prospect of significantly higher penalties than a current $ 75 million ceiling on liability, legal experts say. Even that would be very good to know what Obama talks about the federal response to the deep water spills and BP Oil which responded to the questions of the means of knowing from that point of view is that driving is a very interesting subject that I'd be very well see how many paies more harm than causes of this and because it is taking a very interesting but like everyone always leaves something to desire not, and touching the subject of oil will be true or false as of rumors that are of that the U.S. is stealing oil from Mexico and if so, that the Mexican government says and does nothing to solve and see heritage and welfare of the country ??????
That´s wright, the stealing oil is the famous "operation straw" Always have been existed but, now they (including us)are paying the consecuences.
I totally agree on that because that always existed and because we already entered the same thing but unfortunately we are seeing the consequences and todabia aver that more need to wait and consequently to bring to this because we know one thing, unfortunately, carries or brings to other or not?
In my opinion the costs continue to grow the oil leak and that only by the work of repacion already 2000 million dollars to repair the damage from oil spills in the Gulf of Mexico, plus the oil that is currently being lost 30000-65000 leaking barrels per day (5 to 10 million liters) without their purchases of crude oil lost in Alaska and Canada, is an ecological disaster but also economic
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