Hey, did anyone else catch that story that the EPA has declared Texas a non-compliance zone for EPA greenhouse gas emissions and will be sending in armed feds to enforce permits?
That's not BP making money, that's smart investors making money. BP's profits fell a bit during the spill: $1.79 the quarter before the spill, $1.66 the quarter of the spill, and $1.77 the quarter after the spill.
Their stock price fell disproportionately, because frightened investors worried that their losses could end up being much larger than they actually were. The smart investors who bought from the frightened ones booked a profit when the market realized that BP's looses wouldn't be as large as the frightened investors had feared. BP itself was just a spectator to these games. It neither booked a loss as its stock price fell nor booked a gain as its stock price rose again. Its gains and losses are determined by its sales and expenses, not by fluctuations in its stock market valuation.
Need to go buy some egg nog.
Hey, did anyone else catch that story that the EPA has declared Texas a non-compliance zone for EPA greenhouse gas emissions and will be sending in armed feds to enforce permits?
Their stock price fell disproportionately, because frightened investors worried that their losses could end up being much larger than they actually were. The smart investors who bought from the frightened ones booked a profit when the market realized that BP's looses wouldn't be as large as the frightened investors had feared. BP itself was just a spectator to these games. It neither booked a loss as its stock price fell nor booked a gain as its stock price rose again. Its gains and losses are determined by its sales and expenses, not by fluctuations in its stock market valuation.