Have BP's Shares Been Oversold?

It could very well turn out that BP's shares have been oversold, says Morningstar oil analyst Stephen Simko

Stephen Simko, CFA 6 October, 2011 | 2:16PM
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BP (BP.) has suffered some serious setbacks, and the company's reputation has been damaged. There is of course justification for this: the financial costs of the Macondo oil spill have destroyed a lot of shareholder value, and the oil spill could even prevent the company from receiving new drilling licences in the Gulf. Further, the collapse of its strategic agreement with Rosneft at the hands of its TNK-BP partners created further embarrassment. This deal's failure highlights both the risks of its Russian joint venture (which makes up more than a quarter of the company's total production) as well as the u

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BP PLC304.60 GBP0.00Rating

About Author

Stephen Simko, CFA  is a senior stock analyst at Morningstar.

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