Tags: Money Manager Tilson Bullish on BP Stock Despite Crisis

Money Manager Tilson Bullish on BP Stock Despite Crisis

By    |   Thursday, 24 Jun 2010 01:41 PM

Renowned money manager Whitney Tilson of T2 Partners is bullish on BP, despite its Gulf of Mexico disaster.

The company will "earn its way out of trouble," he told CNBC.

What makes BP attractive?

It’s the fourth most profitable company in the world, regularly earning more than $20 billion a year, Tilson points out.

BP shares have plunged 50 percent since the April 20 Deepwater Horizon well blowout and recently traded at $29.70. That makes them attractive to some value investors.

The spill may cost BP as much as $150 billion, but $30 billion is more likely, Tilson says. The company can afford that sum and still remain profitable, he maintains.

To be sure, he says investors should refrain from taking big positions in BP, because if the spill ends up costing $150 billion, the stock would become worthless.

State pension funds probably won’t be joining Tilson in buying BP shares. Data compiled by Bloomberg show that 42 state pension plans have lost $1.4 billion as a result of the stock’s tumble.

Which ones fared worst?

The California Public Employees’ Retirement System lost $284.6 million, the California State Teachers’ Retirement System lost $104.8 million, Florida lost $87.8 million and the Texas Teachers Retirement System lost $84.5 million, according to Bloomberg.

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Renowned money manager Whitney Tilson of T2 Partners is bullish on BP, despite its Gulf of Mexico disaster. The company will earn its way out of trouble, he told CNBC. What makes BP attractive? It s the fourth most profitable company in the world, regularly earning...
Money Manager Tilson Bullish on BP Stock Despite Crisis
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2010-41-24
Thursday, 24 Jun 2010 01:41 PM
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