BP

The markets kicked off a new month with continued worries about BP’s (BP) problems and its impact on the energy sector. The Dow Jones Industrial Average fell 112.61, or 1.11%, to 10,024.02, and the S&P 500 dropped 18.70, or 1.72%, to 1,070.71. The Nasdaq sank 34.71, or 1.54%, to 2,222.33 (TheStreet.com)

As BP prepares to pay its quarterly dividend which was declared as of May 5th and payable sometime later in June, there is much discussion around its viability to sustain all of the negative news that has been flowing as of late.  If BP continues to pay its dividend, which no one seems to think otherwise, this would equate to an annualized 7.8% dividend yield, which doesn’t even make sense.  However, at this point, the total dollar value of the cost to clean up the Gulf cost mess is wide ranging. 

There was tremendous sell pressure on BP today, as it lost another 15% of its enterprise value.  Other energy related stocks were torched as well.

Anadarko Petroleum Corp (APC) - 19.5%

Halibuton Co (HAL) -14.8%

National Oilwell Varco Inc (NOV) -11.1%

Massey Energy (MEE) -8.9%

Noble Energy (NBL) -8.8%

Schlumberger NV (SLB) -7.8%

I figure today is worth making a list of newsworthy links related to BP, to ensure each reader becomes informed of what the news wires are saying about the company, today.

BP (NYSE:BP) Under Civil, Criminal Investigation

Energy ETFs Battered By Gulf Disaster - IBD

Few seen dodging market mauling of drilling stocks - Reuters

After Hours - Marketwatch

Late Market Roundup (BP, RYAAY, F, TM, HPQ) - Benzinga

Top Volume Losers (BP plc, HAL, Transocean LTD, THC) - Penny Stock Live

Analyst: BP Investors “Overreacting” (BP, JPM) - Benzinga

BP (Public, NYSE:BP): Buy On The Dips - istockanalyst

Could ‘Sham Wow’ for Oil Help Gulf Clean Up? – CNBC

Options Action: Playing The Uncertainty Of BP – CNBC

BP Tries New Plan to Control Spill as Criminal Probe Begins – Reuters

Lawsuits Move Forward in Alabama Against BP

Will BP Go Bust?

Interview With Van Eck’s Shawn Reynolds: Opportunities in Oil and Gas

Valuing BP

Offshore Drilling and U.S. Energy Security: In Need of a Regulatory Framework

SeekingAlpha StockTalks about BP

Interesting factoid from The Kirk Report about the first trading day after Memorial Day:  “As the 3rd worst post-Memorial Day in S&P history, the best thing that can be said is that at least the odds are with us for the next two days. I know, not much to go on, but staying opportunistic and open-minded amid so much market uncertainty and widespread disgust is at least my game plan for the next three days.”

Quote of the day:  The future depends on what we do in the present. – Mahatma Gandhi