Stocks | Jul 8, 2010 | 0 Comments

Are Investors Getting Bullish on BP?

Future As Unclear As The Gulf Water . . .

Perhaps it’s the fact that CNN.com and other networks are not currently covering the BP situation as much or that hope springs eternal in the back half of 2010, but investors appear to be getting bullish on BP (Symbol: BP).

It’s Been a Good Month

Take a look at the chart below. Since July 1st, BP has begun a climb from the $29 level to its close of $33.74 on July 8, 2010.

Greed is Good

It’s apparent that many investors are suffering from “bottom-picking syndrome.” There’s still plenty of bad news out there. What about upcoming litigation and damages against BP?

Today’s News Roundup

According to a CNNMoney.com article, people are literally waiting in line to file claims against BP. Although the company is trying to get more strict with payment policies, the line apparently isn’t getting any smaller.

The current tally: 51,000 checks, 100,000 total claims files, 45,000 claims pending and $157.6 million paid out so far.

Additionally, BP is about to lose control of the claims process, which will be overseen by Kenneth Feinberg.

And there’s reports of BP allegedly not paying up on their end of the deal. An article from WJHG News Channel 7 in Florida cites Chuck Stanley, a business owner who filed a claim against BP, as saying “It’s the same story over and over and over, no matter where you are. The first check comes quick, the second check never comes.”

Will History Repeat?

Last month BP’s stock had a similar bounce. It jumped from $29.20 on June 09, 2010 to $33.97 two days later. However, over the next two weeks, the stock returned to sub-$30 price point. Volume during that time was approximately four times what it is currently.

With this much uncertainly on the horizon I have to think that only greedy gamblers are attempting to get into BP at this point.