BP (NYSE:BP): Share Price Collapse Unjustified

BP (NYSE:BP) said today the collapse of their share price is unjustified, although at the same time saying the cost of the cleanup of the oil spill has surged to $1.43 billion.

For those unfamiliar with how investors and traders view companies in extraordinary circumstances, they look to the future of the company and make decisions on the value based on what they believe the future is for the company.

Then they either discount the stock, i.e. push the share price down based on those assumptions, or they can bid the stock up if they think the company has a great future. You also have to add the short-, mid-, and long-term outlook to get the overall picture of why a stock is trading where it's at.

This is why the share price of BP is falling, as people are discounting the future of the company and pushing the share price of the company down as a result.

BP said about the situation, "The company is not aware of any reason which justifies this share price movement. BP faces this situation as a strong company."

Although that is an accurate assessment, the question is how strong they're going to be a year from now and on, once the liabilities related to the oil spill are determined and have to be paid out.

That's what's driving down the share price of the company, not their current strength.

Seabridge Gold (AMEX:SA) Public Offering Price

Seabridge Gold Public Offering

Seabridge Gold (AMEX:SA) announced late last week that it has an underwriting agreement in place to make a public offering of 2.5 million common shares, priced at $22.90 a share.

At that price the company would raise just above $57 million, depending on whether or nt the over-allotment option is exercised by the underwriters.

Seabridge says it will use the funds for further exploration and development, along with general unnamed purposes.

Seabridge Gold Public Offering