Replies to post #323869 on $Stock*Shop*Charts*News*Option$

[Stock Lobster]

Re BP: Very much so, imo. Downgrade to junk means investment grade funds MUST divest....

never mind the pending dividend cut, which they are postponing announcing. Even though they will call it a 'deferred' dividend, I still would be concerned that quite a few funds who ONLY invest in dividend stocks, would see the writing on the wall, and began divesting of the stock.

The news yesterday, from the UK Telegraph, that large funds have already begun divesting, confirms what we see on the tape

BP oil spill: Largest shareholders cut stake as price falls

BP's largest shareholders have cut their holdings in the troubled oil giant – with five of the group's top 10 shareholders selling shares in recent weeks.

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7825131/BP-oil-spill-Largest-shareholders-cut-stake-as-price-falls.html

[Stock Lobster]

Re BP: Very much so, imo. Downgrade to junk means investment grade funds MUST divest....

never mind the pending dividend cut, which they are postponing announcing. Even though they will call it a 'deferred' dividend, I still would be concerned that quite a few funds who ONLY invest in dividend stocks, would see the writing on the wall, and began divesting of the stock.

The news yesterday, from the UK Telegraph, that large funds have already begun divesting, confirms what we see on the tape

BP oil spill: Largest shareholders cut stake as price falls

BP's largest shareholders have cut their holdings in the troubled oil giant – with five of the group's top 10 shareholders selling shares in recent weeks.


Analysis by The Daily Telegraph of data compiled by Citywatch shows that major UK institutions including Legal & General, M&G, Scottish Widows, Threadneedle and Axa have all trimmed their holdings since the Deepwater Horizon rig sank with the loss of 11 lives in April.

A number of so-called "FTSE tracker funds" will have been forced to sell as BP's share price fell – reducing its relative size in the FTSE 100.
http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7825131/BP-oil-spill-Largest-shareholders-cut-stake-as-price-falls.html

[Stock Lobster]

Re BP: Very much so, imo. Downgrade to junk means investment grade funds MUST divest....

..never mind the pending dividend cut, which they are postponing announcing. Even though they will call it a 'deferred' dividend, I still would be concerned that quite a few funds who ONLY invest in dividend stocks, would see the writing on the wall, and began divesting of the stock.

The news yesterday, from the UK Telegraph, that large funds have already begun divesting, confirms what we see on the tape...although shorts should be aware that someone IS buying

BP oil spill: Largest shareholders cut stake as price falls

BP's largest shareholders have cut their holdings in the troubled oil giant – with five of the group's top 10 shareholders selling shares in recent weeks.


Analysis by The Daily Telegraph of data compiled by Citywatch shows that major UK institutions including Legal & General, M&G, Scottish Widows, Threadneedle and Axa have all trimmed their holdings since the Deepwater Horizon rig sank with the loss of 11 lives in April.

A number of so-called "FTSE tracker funds" will have been forced to sell as BP's share price fell – reducing its relative size in the FTSE 100.

Scottish Widows has been one of the heaviest sellers. BP's ninth largest shareholder has cut its stake from 1.86pc before the disaster to 1.27pc at the start of the month.

Traders believe that much of the stock has been bought by UK hedge funds.

According to the Citywatch data US pension funds – including Calpers, the Teacher Retirement System of Texas and Ohio Public Employees Retirement System – have held their stakes in the company despite the dramatic fall in the share price.

Traders believe that Britian's top hedge funds have used BP's share price weakness to build stakes in the group.

GLG and Blackrock are said to be amongst UK based hedge funds to have bet on a recovery in BP's fortunes – with some funds buying stakes in excess of 1pc costing more than £600m.

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7825131/BP-oil-spill-Largest-shareholders-cut-stake-as-price-falls.html