BP Can't Explain Diving Stock

Company 'is not aware of any reason' for price drop
By Kevin Spak,  Newser Staff
Posted Jun 10, 2010 10:49 AM CDT
BP's stock price through May is seen in this chart. And no, your eyes aren't deceiving you, that's an almost 40% drop.   (Associated Press)
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(Newser) – It’s probably not terribly surprising that BP’s stock hit a 13-year low this morning—unless, apparently, you’re BP. The company put out a statement last night saying that it was “not aware of any reason which justifies this share price movement.” Well, the Wall Street Journal is aware of some reasons, most notably the ever-harsher rhetoric from US politicians, which surely bodes poorly for the company’s future US endeavors.

“BP has been late to recognize the critical political sensitivity,” said one analyst, adding that last night’s statement was worthless. He, and other analysts, thinks the board needs to cut its dividend to appease the Obama administration, and evince some faith in its management team. “The share price reaction is telling BP’s board to show its hand,” said another analyst, “quickly.”

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