BP PLC (BP)

Litigation and Gulf of Mexico is not the issue with share price. It is built into the price. The issue with these oil companies is that it is tough for them to grow. Can they find and extract oil at a reasonable price. These companies need big assets to grow. They are getting very cheap and they are paying a good dividend. It is safe. 5.3%. This is a good point to buy them. Prefers CVE-T, however.

Stock is substantially on sale because of liability issues surrounding the Gulf of Mexico. Most of that is very well provisioned. Owns a ton of cash. Doesn’t think gross negligence will be proven. Good balance sheet and good dividend of 4.94%. Once settlement is actually finalized, you’ll find that a lot of capital is being raised so they can tie in high impact explorations. Just recently made a $20 million gain on the sale of the TNK assets. Also, they could buy back, up to 3% of shares.

Was involved in a lot of legal issues, which are now almost all behind them. Sold off non-core assets and management is really making an effort to make it a better company. Not an expensive stock. He prefers Canada, which has a number of wonderful oil companies although they are not getting the international oil prices.

Near 5% dividend. More of a capital gains story longer term. Sold off T&K joint venture assets. Stock is on sale because of Gulf Liability, which starting to reach conclusion. Repositioning portfolio for growth. $41-$42 Could double in 3-4 years. In the next year could breach $50

(Market Call Minute.) Off slightly over the last year. Has been banned from doing US government contracts. PE of 6.9 and the yield of 5.3% so it is probably a buy.

Big overhang on this is the Gulf of Mexico liability. For the most part, barring the US governments’ award of gross negligence, it should be well provisioned on the liability front. Selling off some of their old legacy assets and putting that capital to work into newer higher octane opportunities. 4.5% dividend.

(Market Call Minute) Expects asset sells to continue. Mexico is well resourced and it will grow moving forward. Thinks it will enter an exit-buying program.