XOM - BP: A Lot More Work Needed
2024-07-10 10:38:50 ET
Summary
- I worry that a company that "hits many singles may unintentionally hit a home run" in the wrong area.
- BP p.l.c. struggles to break free from past costly mistakes.
- Management at BP may be more of a liability than an asset.
- Despite having a strong cash position, BP's balance sheet shows signs of inefficient money management.
- The stock price is likely to stagnate until at least some issues are resolved to the satisfaction of the market.
BP p.l.c. ( BP ) is one of those companies that keeps announcing improvements, yet the company seems unable to let go of habits from the past. That can mean the future will be every bit as costly as was the past. I grew up with the old saying that "the players most likely to hit home runs are the ones with a lot of singles." Many times, that was applied to industry. If they were the wrong singles (and BP has a fair number of those in my lifetime), then the possibility of a costly home run cannot be ruled out....
BP: A Lot More Work Needed