Above is the Monthly chart of
It was a bad day for most stocks , but it was a bloodbath for embattled oil giant BP.
Shares of BP dived 16 percent , driving the stock price to below $30 per share, the worst drop on record for the company. The British energy giant closed at $29.20 per share. More ominously, investors and traders rushed to dump their BP: Trading of the stock occurred at four times normal volume today.
As a result, the asset-rich company is now trading for less than its book value, which is essentially all the assets it has — oil fields, oil rigs and so forth — minus intangible assets and liabilities.
In English, this means that investors and traders think that the company is now actually worth less than all the hard assets it owns. That’s a confidence trade.
Today, BP is worth $91.4 billion. In mid-April, the company was worth $180 billion.
BP will be forced into a pre-packaged bankruptcy hit the markets like a torpedo into a well head.
What is interesting is that companies are usually very quick to respond to market rumors. So far BP has been silent and has yet to issue any statements regarding the speculation of a bankruptcy filing.
I have no other information than what is being reported on the wire services. If BP is to make a statement dispelling the speculation they had better do it soon.