Post # 1
So frustrated- we had some investments that we expected to skyrocket if Bridal Party stock went down, and all the experts were saying that if canceled their dividend, the stock would plummet. They canceled their dividend, and SURPRISE! The stock is up (therefore we lost money). Why?
Post # 3
Hard to ever tell with those things. Possibly people wanted to buy into it when it was lower than it has been expecting it to go up later, or a lot of people were shorting it before and driving the price down.
The take away is that the market does crazy things that don’t always have a clear cut explanation, plus there is a lot of a herd mentality, so if the price starts going up, more people buy it because it is going up.
Post # 4
This is a stupid guess (seeing as I know nothing about the stock market) but my reasoning is that:
Bridal Party is a huge oil supplier. Bridal Party is losing millions of gallons of oil right now. Less oil= less product to be refined = oil becomes scarcer and therefore more valuable.
The huge losses of oil that Bridal Party is dealing with right now are driving oil prices up, so BP’s stock is getting more expensive.
Post # 5
honestly i was thinking of buying stock but now since it went up!
Post # 6
Actually, I think it might have to do with them announcing their 20 billion dollar fund to help with the cleanup today. Usually when companies announce something huge, their stocks fluctuate a lot. But, I don’t really know much about all this either.
@texaslawgirl — I had thought the same thing, and then they said on one news station that even though millions of gallons of oil have been lost, that still only equals the amount of oil that the US uses in gas in 1 hour! Isn’t that crazy?
It’s a lot to be floating in the ocean, but apparently not a lot in comparison to what we use everyday. I guess that’s why gas prices really haven’t gone up much, at least around in my area.
Post # 7
It also may have to do with people hedging on Bridal Party.
Post # 8
Probably because it appears that they’re putting more time into their PR campaign than fixing their HUGE PROBLEM IN THE GULF.
Post # 9
Last night they said on the news that only about 2% has been released in the gulf and that it will take 2-4 years in total (if we don’t stop it) for all oil to be released. So, thus far, it’s only been a very, very small amount…and yet look how much damage. 🙁
Post # 10
Miss ASB & piglet have the right ideas.
Along with stock manipulation, it isnt all that surprising to me (but I am a stock market junky)..
Post # 11
Establishing an escrow account greatly reduces the chance of Bridal Party assets being seized and dividends kept from being paid out. BP’s credit rating has been lowered a couple of times, and concerns were that Bridal Party would have trouble getting any credit. That concern was also eased. Overall, the company’s risk went down, so its value went up.
The well that blew was not a production well, so the amount of oil available for refining wasn’t reduced at all. Even with the huge volume of oil that’s now in the gulf, the reservoir is far from being depleted. Global production is still lower than ’08 levels, with lots of extra capacity should demand go up. OPEC has really kept the price up with limits on production.
Post # 12
I noticed the other day their stock price shot up when they said they would be putting $$$ (can’t remember the amount, but it was in the billions) into a fund for emergency relief/repayment to families, etc. To me it seemed like it was a good faith rally on behalf of investors…or it could be the traditional market mapiulation by the floor traders. I swear those guys get bored and like to run the market.