Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

What You Were Selling Last Week: BP plc (ADR) (BP)

LONDON — One of Warren Buffett‘s famous investing sayings is “be fearful when others are greedy and greedy only when others are fearful” — or, in other words, sell when others are buying and buy when they’re selling.

But we might expect Foolish investors to know that, and looking at what Fools have been selling recently might well provide us with some ideas for investments that are past their prime

So, in this series of articles, we’re going to look at what customers of The Motley Fool ShareDealing Service have been selling in the past week or so, and what might have made them decide to do so.

Uncertainty abounds
BP plc (ADR)
(NYSE:BP) is in the No. 7 spot in the latest “Top Ten Sells” list (based on aggregate data from The Motley Fool ShareDealing Service) as the company remains embroiled in a civil lawsuit to determine to what extent it was to blame for the Gulf of Mexico oil spill in 2010, and the degree of negligence that led to what happened.

BP plc (ADR) (NYSE:BP)Even though BP plc (ADR) (NYSE:BP) has already agreed to pay $4.5 billion (2.9 billion pounds) to settle criminal charges and has paid out $7.8 billion (5.2 billion pounds) in damage settlements, it still faces the possibility of a colossal fine — up to $17.6 billion (11.7 billion pounds) — if the verdict in the current trial in New Orleans goes against it.

On a brighter note, BP plc (ADR) (NYSE:BP) is getting closer to concluding a merger deal with Rosneft’ NK OAO (MCX:ROSN), which will see the Russian national oil company take over BP plc (ADR) (NYSE:BP)’s stake in TNK-BP, finally disentangling the company from the troubled joint venture. In return BP will get a 20% interest in Rosneft.

BP plc (ADR) (NYSE:BP)’s share price is up more than 4% so far this year, and analysts having recently been revising their 2013 and 2014 earnings estimates upwards. If they’re correct, BP could be on a yield of up to 6% in around two years.

But although the company has been striving hard to recover from the after-effects of the Deepwater Horizon disaster, and seems set to continue making good progress, it’s clear that there’s still a great deal of uncertainty, which won’t disappear until the current trial is over and the full amount of BP plc (ADR) (NYSE:BP)’s financial liability is known.

The article What You Were Selling Last Week: BP originally appeared on and is written by Jon Wallis.

Jon Wallis owns shares in BP. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.