Shares of BP (BP) are getting clobbered again today, down to about $30 per share, or 50% since the rig explosion in late April. Today’s worries are being attributed to two stories. First, talk of a dividend suspension is not exactly new and even if the company did suspend dividends, or as I have suggested, paid out a BP stock dividend rather than cash, it should not have any impact on the stock price (shares are not valued off of dividend yields, only cash flows). Also today the New York Times wrote about a possible pre-packaged bankruptcy for BP.
And we should probably keep an eye on that last part. A pre-packaged bankruptcy would probably shield BP against any large-scale judgments.