Oil spill news miscellany. BP's solvency is still the topic

I am very short on time today and I have right around $20 billion dollars worth of links to share so instead of making a formal post I’ll make like our good friend Editilla who also gets a blanket hat tip and simply aggregate the BP finance news for the Slabbed Nation. Hopefully Nowdy will be around a bit later with the latest on the Ex Rel Rigsby. Without further adieu here is the latest:

Becky Mowbray at the Times Picayune wrote a good article on the specter of a BP bankruptcy which included comments from two local bankruptcy lawyers in Joe Friend at Breazeale, Sachse & Wilson and Rudy Cerone at McGlinchey Stafford who both were willing to go out on a limb making quasi-predictions about what the future holds. The story is a bit more sanguine regarding BPs future prospects than most I’ve seen.

James Gill’s column in today’s Times Picayune nails the dichotomy of why everyone hates BP while also needing the company to stay solvent and engaged.

Harry Shearer wrote a very good piece for the Huff Po that nails the hard reality why no one should feel sorry for BP longs.  I personally do not like to see people lose money in the markets but how much of BP’s profits came from cutting corners on safety through time? The piece serves as a reminder why I caution most retail investors against owning individual issues, especially those using brokers or so called money managers.

One knucklehead wanting to save 10 hours may well be the cause of this disaster. It appears the same knucklehead also has a slight problem telling the truth. Continue reading “Oil spill news miscellany. BP's solvency is still the topic”

Tuesday Music: This is what happened the last time the Brits f*cked with New Orleans

You guys are going to need another plan of attack. Blaming the victims is a tried and true tactic, in fact insurer State Farm mastered the maneuver down here little under 5 years ago.

In any event Jarvis Deberry has been there and done that and is not amused:

To illustrate that damage to Louisiana has been overstated, reporter Sharon Churcher drops in on the Vu-Doo Lounge in Lafourche Parish where she observes a fisherman blasting BP while buying his friends a round of Bud Light.

Share “The large amounts of beer being consumed made it clear,” she writes, “… that the Lounge’s patrons still had some source of income.”

But please don’t use that anecdote as proof that coastal Louisianians were doing well. To illustrate the opposite point, she cites the figure that 16 percent of Grand Isle residents were living beneath the poverty line. “The rotted teeth and prematurely aged faces of most of those I meet lead me to believe the real figure may be double that.” Continue reading “Tuesday Music: This is what happened the last time the Brits f*cked with New Orleans”

Slicked and Slabbed the BP Disaster Part 6: The BP bankruptcy watch commences

It’s official folks, a stock analyst has whispered the bankruptcy words with respect to BP and it evidently caused a late session stampede out of the common stock. The Times Picayune AP story on the stampede aspect can be found here.  A good overall analysis of why yesterday’s 16% drop is significant can be found courtesy of the WaPo’s Frank Ahrens here as BP’s common stock now trades below book value, a widely cited but IMHO a useless measure of an enterprises intrinsic worth.

I had to laugh at Mr Ahrens’ report because I ate supper earlier this week in Jackson with a noted litigator who will most likely be part of the people’s legal team (ie a trial lawyer) against BP and I made some remarks regarding recent trading volume that today’s news will validate.  $5 is the magic number folks, if BP’s ADRs bust that number all bets are off IMHO. My prior posts on the general subject can be found here and here.

Finally I’ll add there is a significance in the rumored bankruptcy filing timeline cited in that AP story that bears out something I’ve disclosed at this point to the 2 individuals who I’ve befriended since beginning this project called slabbed. Continue reading “Slicked and Slabbed the BP Disaster Part 6: The BP bankruptcy watch commences”

Slicked and Slabbed the BP disaster Part 3: Commenc

With a big hat tip to Editilla over at the Ladder lets visit with Phil Butler, editor-in-chief of Everything PR and senior partner at Pamil Visions PR as he explores the reasons he thinks BP’s common stock is worthless. Here is a snippet:

The simple truth, when all is said and done, is that British Petroleum cannot pay for the damage it has done. No way in hell. This is my opinion, and I am not alone in suggesting it. BP has already lost one third of its value based just on the stock market. If the total costs exceed BP’s value, or even come close, liquidating the company could likely still not satisfy all the damage done. Especially if this oil continues for an extended period.

There is no denying that is it awfully risky to own BP ADRs these days.

sop

Dupont Wins Round 2

My understanding is no scientific evidence was produced in the first trial by the plaintiffs. The MS Supremes reversed and Dupont wins round 2. The story does not say but I assume Kathleen Smiley handled the second go round for Glen Strong (Kathleen no longer has a law license). I remember him from my teenage years as a good guy.

One thing that bothered me about the first case is that he testified to eating oysters from the Bay itself. Those reefs were closed then as Shoreline Park was essentially using the Bay for a commode and was thus polluted. I’m not certain I would have overlooked that as a juror.

Dupont and dioxin pollution is another subject matter and perhaps fodder for a future post. Here is the Sun Herald story:

A jury Thursday sided with The DuPont Co. in the retrial of a civil lawsuit brought by a man who said dioxins from a plant on the Mississippi Gulf Coast caused his rare blood cancer. Continue reading “Dupont Wins Round 2”