Are BP good shares to buy right now? If not what shares are recommended?

by , 3 Aug 2010

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Obviously, as with all shares, it depends on how much risk that you want to take, whether you're after growth or income or both and how much you want to invest and for how long etc.

BP have just stopped paying dividends for the timebeing so it's growth only for the short term at least.

Maybe you should look to join a website such as The Share Centre who provide weekly tips on-line as well as through regular mailings in the post.

by Wolfie53, 3 Aug 2010

Definitely a gamble - but if you believe they will be able to sort out the problems they have and will return to profit then they are a good buy. Personally I really think they will recover fairly quickly and the share price will rise. BUT it is a gamble

by kensington143, 3 Aug 2010

Historically BP shares have been a good investment which is why lots of pension providers invest in them. Naturally with recent events they have taken a tumble so they could be a good investment providing they rescue their reputation and can get back into profit. My gut feeling is that they would be a good investment, and I think I would buy some if I had some disposable cash, but you have to be prepared for the price to come down and never reach the level they were at until recently.

There's also the ethical dilemma here as well, do you want to invest in a company that is responsible for one of the worst environmental disasters in a long time (possibly ever)? Only you can make that decision.

by MarkX, 3 Aug 2010

BP are quite a safe choice if buying shares but they are still a gamble and that oil is going to run out some day

by abigail69, 3 Aug 2010

I know share prices have plummeted due to the oil leak and people that already held shares have lost out but that doesn't mean that it might not be a bad time to buy them now, whilst prices are low. I know it may be a while before things turn around but if you got in now there may be a nice profit in years to come. I also recently read that shares in agricultural funds are the thing to buy into at the moment!!

by frenchwoodgirl, 3 Aug 2010

I agree with it may be a few years untill they start to rise again but could be a good investment for the long term

by Wiggy, 3 Aug 2010

Yes they are if you look at where they were roughly ?6.50. Today they ?4.15 ish. I have been watching them quite closely. A broker will tell you that they have been taking profits for clients from the time they hit ?3.20. They will also say that it is a buy for the long term and that the bad news is priced in. They rose when the CEO Tony Hayward went. They also bounced with the news about capping the well in mid July. Typically a share will take a bounce just before the divident is due. The divident was cut in July so what you have to take into account is that it won't pay a divident (normally quarterly or half yearly) until the Board reverses that decision. It is one of the largest companies and traditionally pays a generous divident around 7% so is good for income and capital growth. It wd be a long term buy although you may get a bounce (currently they're moving up) and you will be able to take a profit in the short term. Worth it depending on how much you want to invest to start with. If you invest two hundred and each share rise by a ?1 you make ?200 minus commissions. But if you invest ?10,000 a short term bounce of ?1 or less gives a good return. The brokers could be wrong though. There is no certainly! There is only one certainly: we will need oil for a long time to come

by pmscot93, 3 Aug 2010

Do you think exon or shell will make an offer?

by donk, 3 Aug 2010

I'm no expert but no I don't. BP is huge. It is selling off ?3bn of assets currently but that is like me selling a but of furniture on Ebay. I don't think Exxon or Shell are big enough are they?? But yes they might be buying some aof the assets. I have no idea what the assets are. Ther is speculation in the press but I find the difference between the news channels and the specialst financial press quite stark the latter doesn't think it is a likely take over target. But even if it is that can be very good news for the investor. It means someone has confidence in them and thinks they are worth acquiring.

by pmscot93, 3 Aug 2010

Posts within the money.co.uk community represent the views, experiences and opinions of members and experts only. They should not be taken as financial advice and should not be followed without further research.

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