Chart: ratio of BP to the energy sector:
Basically, the only time BP outperformed the sector, was in the initial rebound after the spill lows. From August 2010 to today, BP has steadily underperformed. Post-spill, it hasn't gotten anywhere close to its pre-spill stock price. The spill is off the front pages, has been for a while, and the costs are fairly well quantified, so the stock's rebound off the spill lows is finished. Volatility and volume are back to pre-spill levels.
Since the spill, BP has tried to secure its future, by making deals in places that don't believe in the rule of law, like Russia and Libya. This is a risky strategy; if it works, there is a lot of upside to the stock, but the chances of failure are large.
I have large unrealized cap gains in BP. I'm considering selling all my BP, which I had intended as a LT holding. This would "harvest" the post-spill rebound. Comments appreciated.
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