MARKET TALK: BP Oil Spill More Than Discounted In Share Price

21st Jun 2010 11:46

1046 GMT [Dow Jones] The cost of the Gulf of Mexico oil spill has been more than discounted into BP's (BP.LN) share price, say J O Hambro UK equity income managers. Continues to hold the stock at a current position size of 5.1% of the JOHCM UK Equity Income Fund, a slight overweight relative to the FTSE All-Share index. The managers think the company's current valuation is very low, its balance sheet is strong and note that it is producing excess cashflow based upon current oil prices. Says despite the cancellation of this year's remaining BP dividend payments, the fund will still grow its dividend this year by 3-4%. BP shares -4.2% at 342p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 21, 2010 06:46 ET (10:46 GMT)