is now the time to buy BP shares?
I am thinking in investing a small amount of money and am considering buying BP shares
Do you think that now is a good time to buy?
If so why/if not why-brief explaination will help a lot.
Thanks
Asked by jules_siraporn - 1 year ago
Answer:
Following the Gulf of Mexico accident, BPs share price fell from around £6.50 to a low of £3.03. More recently this recovered to around £4.20 but has fallen again by about 10%.
If you believe BP is undervalued as a business, as many people do, the long term prospects for an increase in price are good. In the short term with BP not paying a dividend and still paying to sort out the oil leak, the share price could go either way.
Generally speaking investing in the stock market should not be considered for less than a 5 year period. If you are an inexperienced investor you should not look at BP or any other share as a get rich quick opportunity.
Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving independent financial advice relevant to your circumstances. To find an IFA please go to http://www.unbiased.co.uk
Sources:
Danny Cox, Certified Financial Planner, Hargreaves Lansdown
Chartered Financial Planner, Certified Financial Planner and heads the advisory team at Hargreaves Lansdown. Danny is the Money Marketing Best Retirement Planner 2007 and Financial Adviser SIPP Adviser of the Year 2007.