Many experts contend that BP is still a good investment despite the massive oil spill and its resulting public-relations nightmare.
The British oil giant company’s stock remains worthwhile, Stephen Roseman, portfolio manager for Thesis Fund Management, told Forbes.
“As for reasons to invest, there are many, but it requires the intestinal fortitude to stomach the recent volatility and the possibility that the company employs a tactical bankruptcy to sidestep, or minimize, liability claims," he said.
"BP is attractive, but so are many other energy companies whose stocks have suffered the collateral damage of the Gulf of Mexico spill,” he said.
Owning a stock with political ramifications is a big risk, said Ron Roge, CEO of R.W. Roge & Co.
“There are plenty of reasons to like BP. They own one of the most extensive offshore oil and gas discovery portfolios in the world," he told Forbes.
Stockholders of BP might face a scenario where the stock “could be dead money for a while,” Andrew Lees, a portfolio manager at Invesco Advisers, told the New York Times.
Pimco star Bill Gross views BP as a value play in the wake of its crisis and has been buying the beleaguered oil company’s bonds.
He told Reuters that Pimco owns $100 million of BP bonds and also purchased six- to 12-month paper of Anadarko Petroleum. That company owns 25 percent of the Deepwater Horizon well that is gushing oil into the Gulf of Mexico.
© 2017 Newsmax Finance. All rights reserved.