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) Won't Plug Well Until Next Week

Thad Allen, National Incident Commander told reporters on Sunday that BP (NYSE:BP) will most likely begin working on plugging the well next week. The ships used to help plug the well were evacuated Friday due to tropical storm Bonnie, but most have returned or are expected to return within 24 hours.

Allen said that he plans on BP beginning the process known as "static kill" next week. This entails pouring mud into the top of the well. Once completed, they will then proceed with what's called the "bottom kill." The process includes pouring mud and concrete by a connecting line to the relief well.

Allen was very optimistic over the success of containing the leaking oil on July 15th. He said the pressure continues to rise at a slow steady pace, reaching 6,904 pounds per square inch. The well remains intact with no leaks.

BP (NYSE:BP) Shares Decline As Cap Is Holding

After all the anticipation and excitement over BP's (NYSE:BP) success in stopping the leaking oil, reality has hit to the massive effects of the worst oil spill in U.S. history. BP saw a decline in their shares of 4 percent to $37.38.

Fifteen hours into the cap being placed upon Macondo, it is holding strong. President Barack Obama said, "It is important that we don't get ahead of ourselves here. You know, one of the problems with having the camera down there is, that when the oil stops gushing everybody feels like we're done and we're not."

While Kent Wells, BP's vice president, said that the spill center has measured a steady increase of pressure, above and beyond the minimum of 6,000 pounds to 6,700 pounds per square inch. He also stated that BP has restarted working on the relief well to help release pressure on the ruptured well.

BP's (NYSE:BP) New Plans, Will Make Spill Worse

As BP (NYSE:BP) is putting together a new plan, after the failed "top kill" attempt, it could only make things worse. Although it would only be temporarily.

Carol Browner, the White House energy czar said, "the American people need to know that it is possible we will have oil leaking from this well until August, when the relief wells will be finished." The other complication is that storm season is moving into the Gulf. As storms move in, this causes the oil recovery operations to come to a halt.

Michael Dixon, a lieutenant in charge of oil recovery operations at the Coast Guard Venice staging area said, "the way that the currents are treating this, and the ongoing leaking of oil, this is basically small spills all over the place. It's a series of a lot of small oil spills. We're fighting on a lot of fronts."

So our worst fears are being realized, our oceans will continue to be polluted, our shorelines destroyed, stocks will continue to fall, and the full effects on humans has yet to be fully realized.