BP Revisited 2

BP (LSE:BP)
Major oil companies are very good buys right now, especially with the price of oil taking a plunge.

Last month we mentioned what good value Exxon was.
As prices of everything associated with oil exploration and production climb, the Oil majors look more and more attractive as long term buys.
They have experienced escalation in supply prices many times in the past and weathered the storm.
We have held BP in our portfolios on many occasions and always done well with this company.  It has proved a very reliable performer, through good markets and bad.
Its share price has been hit recently by the dip in oil prices and the terrible sentiment in the markets in general.  However; we see these as short term problems.

BP is a well run company with a great balance sheet and it looks like a bargain at its current price.
It trades on a low forward P/E of 6 and pays a dividend yield of 5.2%. The dividend alone is better than the interest you can earn at the bank!
Double digit capital appreciation on the shares should also be achieved within the next 18- 24 months.
As long as you are prepared to take a longer term view, take the current weakness in its share price to buy into BP now.

Buy BP (LSE:BP) up to 500p

For more details on BP check out the archived reports.