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Description: BP shares dropped as much as 9% in London on Friday, putting the drop the oil major’s market capitalization at more than $100 billion since the Gulf of Mexico oil spill began, as an analyst suggested the company needs to sell stock to assure counterparties of its financial health.

Source:  Marketwatch.com

Date: 06/25/2010

Link: http://www.marketwatch.com/story/bp-shares-get-fresh-hammering-2010-06-25?siteid=nwtwk
 
Questions for discussion:

  • Summarize the financial situation for BP.
  • Evaluate BP as an investment for the next 12 months?
  • What could BP management do now to mitigate further erosion of its stock value?
  • What could other oil companies learn from BP’s experience?

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