BP Stock Price and the affect of the Oil Spill
We all know that every time there is a worldwide event, investors have a chance to capitalize and make money in the markets, especially when it comes to an environmental disaster. The news bring a lot of attention to the stock market. It happened with the Exxon Valdez and Katrina. Now it’s happened again with larger companies like British Petroleum (BP), Transocean Ltd (RIG) and Halliburton (HAL) have been punished. Every time an event like this happens, several penny stocks come into play. Shares of MOPN took off after they received a purchase order from BP for their MOP Maximum Oil Pickup product.
Other penny stocks like EVTN and EVXA also received a large amount of attention from the environmental disaster. All of these companies instantly became hot penny stocks. You should throw these three companies on your penny stocks list and keep an eye on them. Many investors will try to buy familiar names that historically react favorably oil spills. Longer term investors may buy companies like MOPN and EVTN and are hoping for a home run while penny stock flippers and day traders step in and provide constant liquidity.
In the end though only a select few of these names actually benefit from these disasters financially. Only a few contracts are actually given out, so be selective. Keep in mind that profit might be short lived so be prepared to take a quick scalp. Once again the key is being prepared. You need to know which stocks move based on an event. So have your lists of blue chips, mid-caps and penny stocks ready, and be ready to pull the trigger.
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