Crames Gives Up on BP Shares

Jim Cramer has bailed on his BP Plc (NYSE:BP) position. After telling his fans to Buy BP on May 21st, Cramer, "mesmerized" by its fall, pulled the plug this week.

The cost to those who followed his advice: -33%. But since that massive drop off on Wednesday the stock has managed to regain 16% and today trades at $33.

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(ZeroHedge.com) This out from the Mad Money master earlier.

Mesmerized by the Fall of BP, By Jim Cramer | 6/9/2010 6:56 PM EDT

You can't have one of the largest companies in the world disappear overnight and believe it won't affect other companies or the market's psyche. As Doug Kass said late tonight, this was BP's (BP) last hour, with ETF shenanigans thrown in.

At one point today, between $32 and $29, I remarked to a friend that I had never seen a stock unravel in front of my eyes like this one did, with huge value disappearing. Just amazing. Just disappearing.

It was frightening.

Also, it is clear that if you make the company's liability unlimited, it might never want to drill again. Who can risk this? Who can risk having a company taken away from its shareholders, as if it were expropriated even when you believe it deserves it?

Lots of people are debating right now whether any company in the Gulf of Mexico can finish a project, or even stay in the Gulf. They believe this is Three Mile Island for offshore drilling. My colleague Matt Horween reminds me that the risk-reward has now gotten astronomical for those who drill or already have wells in the Gulf.

Watching BP fall and watching Anadarko Petroleum (APC) collapse after actually being up at one point -- talk about misdirection -- was horrifying to everyone. It was like watching the collapse of every single nuclear-power utility in the 1980s in time-lapsed photography.

I know there had been many smart value buyers of BP all the way down. They came on TV. They talked their game. But in the end, they could own, well, nothing. Or what, maybe they make $5? BP is now, to quote the late Richard Nixon, a pitiful helpless giant.

And that has everyone and everything spooked. I ask you this: If you follow the market, were you able to take your eyes off BP?

I sure couldn't.

SOURCE: http://www.zerohedge.com/article/cramer-goes-buy-bye-bye-bp-loses-fans-33-two-weeks