How many times have you looked at a stock and wished its share prices were more affordable? How many times has that wish come true? Unless you went on a buying spree like me during the “economic meltdown” recently, your probably not watching the right company.

Right now, (BP) is on a drop. Unfortunately, the reason for this drop has been an enviromnental disaster than we all have seen in the media for more than a month now. Like any moment of crisis, there are people that panic, and for many stock holders, they opted to sell and push the stock price to basically half of what it was a few months back. This is when I walked in.

Like a sale at your favorite store, its not often you can get a solid company with share prices in the $30 range. I managed to snag 150 shares at $29.75 and again bought another 100 shares at $30.75. These are prices I’m comfortable with, but have budgeted funds to purchase another 150 shares if the prices goes lower.

Whats my goal? I’m holding this stock for one year at minimum. BP has litigation to take care of, and also clean-up costs which might hurt the balance sheets looking forwards for the next 3 quarters. But it looks like the stock price has factored those losses into the price. Finally, with less oil available to consumers, the price/barrel will go up which means the revenue will not be as bad as many might think.

I’m not going to tell anybody to bet the farm on BP, but this is a solid company. Exxon went through a major crisis when the Valdez leaked, but the company still exists today and its share prices charged forward after getting over the bump.

News:
White House Steps Up Pressure on BP, Shareholders

Here is the Market Close for Monday, June 14th

Happy Investing!
Aman, MBA

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