A bullish case for (buying) BP (shares)

[Bragi]

Forget about the environmental disaster BP has created. What's important is that savvy investors think BP stock may be undervalued right now.

Try not to barf while reading the explanation...

...As I said earlier, the costs will be huge. But $70-billion? That’s rich – very rich. Too rich, I would argue. The Valdez spill cost Exxon about $5-billion. That was 20 years ago and it was in some ways a smaller accident, but it’s still a telling statistic.

...beside the sheer magnitude of the numbers, is that there’s no clear culprit. As mentioned, there are three companies that are potentially liable. But government agencies are also on the hook. The interior secretary admits to lax oversight at the agencies responsible for policing offshore drilling.

And the truth is that the rules are hazy because deepwater drilling is the new frontier. Practices and technology change often. They have to.

Another argument, a powerful one, is that to punish the players responsible for this accident too hard would not be in the United States, or western countries’, interests. Offshore drilling is crucial to oil supply, especially non-OPEC supply.

http://www.theglobeandmail.com/globe-investor/investment-ideas/features/vox/a-bullish-case-for-bp/article1576428/