Thursday, June 03, 2010

Everybody In Business Media Please Get A Grip Over BP

I'm a little tired of the talking heads on CNBC and elsewhere chattering about how BP's stock is permanently damaged. Look at XOM's chart from the Exxon Valdez disaster in '89 to the present day. Exxon's stock was flat, not down, but flat for around six years after, and it's split at 2:1 twice in that interval. Unless you've got the investment window of a hummingbird it's hard to make a case that once down is forever down.

The only thing that's going to sink an oil company is alt-energy, and then only with a revolutionary breakthrough, and they're not invested in it.

Sphere: Related Content

No comments: