BP (NYSE:BP) Stock, To Speculative To Buy Says Biggs

The Hedge fund manager Barton Biggs, has this month become more optimistic of stocks, but is still leery saying BP (NYSE:BP) is still "to speculative" to purchase. He disagrees with the analyst in a Bloomberg Story who are rating BP's stock at "buy."

With the optimism from BP finally having success in placing their sealing cap and stopping the leaking oil on July 15th, many seem to think that everything is over with the oil spill. In reality, BP has still not reached the desired pressure in the testing of the well. The original target was set at 8,000 - 9,000 pounds per square inch, they have yet to reach over 7,000 pounds of pressure. Not to mention Macondo well has to still be permanently plugged. Yes BP has had a small success, but we must not delude ourselves to the full scope of reality that has yet to play out with BP.

Biggs said, "It's too speculative for me. Are these people down in the Gulf who aren't going to be able to fish, and their business was fishing, are they going to be able to sue BP for payments for the next 20 years ? I don't know, it's to hard to call."

BP has lost almost 40 percent of their stock market value since the explosion and sinking of the Deepwater Horizon, but the company has rebounded 37 percent.

BP (NYSE:BP) Oil: Sealing Cap Testing Shows Success

On Thursday afternoon BP (NYSE:BP) finally tested the sealing cap that was placed on the Macondo well. The test showed no oil flow and the leak found earlier in the week was successfully repaired.

Although, this is the preliminary phase of their testing. It is expected for the testing to continue on anywhere from the next six hours to two days, possibly longer. Even though there is much to be optimistic about, anything can go wrong as the pressure inside the containment cap continues to be raised. As the testing continues, it will show weather the sealing cap can handle the intense pressure of oil without breaking and causing a new leak.

This is very good new for BP, especially after prior failed attempts to contain the oil leak in the Gulf. After each failed attempt, the company's share prices continued to drop, losing over half of their market value since April 20th. Plus due to the disaster, lawmakers have taken several steps in implementing new safety measures as well as banning new offshore exploration.

BP (NYSE:BP) UPDATE: Sealing Cap Installed, Trading Shares, Futures Trading

After much anticipation, BP (NYSE:BP) has verified that they have been successful in installing the sealing cap onto the leaking Macondo well in the Gulf. Testing is the next phase of the process. Over the next 48 hours the integrity test will be preformed. If successful, no oil will be released into the ocean.

BP stated that a sealing cap like what they have installed, has never before been used at such depths as a mile below the surface. It is unsure if the cap will be able to contain the oil and gas. Once all the information is gathered from the testing, it will get forwarded to different U.S. Government agencies for review.

They will than be able to determine "the way forward" which may include such options as continued testing beyond the 48 hours, or the reinstatement of prior containment. Everything is still up in the air, even though there's success of the placement of the sealing cap, it could end up being no better then the previous containment cap.

BP trading shares have seen an incline again today of 2.5 percent. This is caused by speculation of the continued negotiations to sell $10 billion worth of their Alaskan assets to Apache Corporation. It leaves one wondering though, if the cap is a failure will the futures trading see another massive decline ?

BP (NYSE:BP) Update: Secondary Containment Cap: Removing and Replacing

BP (NYSE:BP) started the process on Saturday, of removing the containment cap from the well. Their plan is to replace it with one that is a tighter fit which will funnel more oil to the ships on the surface. This is very delicate work and there are several robotic submersibles surrounding the well.

Senior Vice President of BP, Kent Wells said, "Over the next four to seven days, depending on how things go, we should get that sealing cap on. That's our plan." If everything goes as planned, all of the oil could be being collected as soon as Monday. It is only another temporary solution until the relief wells are completed, but if successful it would cut the oil that is leaking into the Gulf way down.

The process involves engineers removing a bolted flange below the dome. The flange has to be removed so another piece called the flange spool can be put over the pipe where the sealing cap will be connected. The flange was successfully removed Saturday. BP officials said they are behind schedule for the placement of the sealing cap but are still optimistic.

"Everything done at that site is very much harder than anyone expects, is replacing the cap going to do more damage than leaving it in place, or are you going to cause problems that you can't take care of," said Ed Overton, a Louisiana State University environmental sciences professor.