It is said that good news often comes in threes, and there is one plc and CEO that certainly need it; namely BP and Tony Hayward. Firstly, it is possible two American oil giants, one being Exxon and the other maybe Chevron, are queuing up to buy the company, lock stock and barrel ! Secondly, the British oil plc has started refitting a new larger cap, which is hoped to stem the lethal flow of oil, still gushing into the Gulf of Mexico and onto the neighbouring shores. This is a one step back and two huge leaps forward scenario (hopefully) as the existing cap will be first removed, creating unhindered flow, while preparations are made to fit the new cap, which is hoped to completely stop the leak.
And finally for the chartists; the share price has popped its head above a trendline which has shown resistance since the price commenced its fall in April of this year, when disaster struck.
This trio of good news should provide the BP share price with some underpinning as fresh buyers and take-over speculators returning to the market. Even though the share price is 20% off its lows, it is still 44% off its highs; partly justified by the liabilities and compensation payments, but still leaving room for some decent upside…
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