Typically, when an event occurs that causes a stock’s price to drop
significantly we would look at that stock as a potential investment. This is
not and will not be the case with BP.
Our first criteria for investment, is that the business be one of significant
quality. BP cannot be considered quality. As David Leonhardt pointed out in
his May 31 New York Times article entitled “Spillonomics: Underestimating
Risk”. BP has been a company seeking profits to the exclusion of other
equally serious responsibilities.
Leonhardt wrote, “Years before the Deepwater Horizon rig blew, BP was
developing a reputation as an oil company that took safety risks to save
money. An explosion at a Texas refinery killed 15 workers in 2005, and
federal regulators and a panel led by James A. Baker III, the former
secretary of state, said that cost cutting was partly to blame. The next
Timeline of the 2010 Gulf oil spill legal cases:
— April 20, 2010: An explosion and fire on the BP-operated drilling rig
Deepwater Horizon kills 11 workers. Thousands of gallons of oil begin gushing
into the Gulf of Mexico from the blown-out well.
— June 16, 2010: BP agrees to put $20 billion into an escrow fund to settle
economic injury claims by fishermen and various Gulf industries.
— December 15, 2010: The Justice Department files suit against BP and eight
other companies over the accident, asking they be held liable for removal
costs and damages caused by the explosion and s... (more)
This time of year is a favorite for children of all ages – I happen to be
one of these kids – in part because of the television programs that are
shown around Christmas.
A Charlie Brown Christmas, Santa Claus is Coming to Town, Rudolph the Red
Nose Reindeer, and How the Grinch Stole Christmas, have been favorites of
mine since TV went from exclusively black and white to poor quality color.
This is no coincidence as these programs were made in the mid 1960’s.
As I was watching this year, it occurred to me that if at this time in
history Christmas had not yet been established, if so... (more)
Somewhere on the internet last week, mention was made that unemployment for
high income people was (essentially) non-existent, while extremely high for
low income earners. I was able to track down that data for the fourth quarter
of 2009. Here it is by income:
As you can clearly see the lower income levels are experiencing the greatest
difficulty finding jobs. Interestingly enough, this data is not making its
way into the mainstream. But even more interesting is the set of
“circumstances” that has caused this, or at least occurred in the same
approximate time frame.
Minimum Wage... (more)
"This was the o bject of the Declaration of Independence. Not to find out new
principles, or new arguments, never before thought of, not merely to say
things which had never been said before; but to place before mankind the
common sense of the su bject, in terms so plain and firm as to command their
assent, and to justify ourselves in the independent stand we are compelled to
take." --Thomas Jefferson
"All that I have, and all that I am and all that I hope to be in life I am
now ready to stake upon it; and I leave off as I began, that live or die,
survive or perish, I am for the... (more)