As each day passes, the headlines surrounding BP's
Yesterday, we learned that the leak from the bottom of the Macondo exploration well is five times more severe than initially thought. Louisiana declared a state of emergency, and the Air Force and the Navy are now helping the Coast Guard try to contain a spill that could surpass Exxon Valdez to become the worst in U.S. history.
BP, along with contractors Halliburton
Some analysts are arguing that the sell-off in BP shares is overdone. Because it's one of the biggest oil companies in the world, a double-digit percentage decline obviously translates to a gigantic loss of market value. Bernstein Research estimates that BP could be on the hook for up to $8 billion in costs, but the company's equity has lost roughly three times that amount in market value.
That BP is oversold is probably a good bet. An even better bet, I think, is that companies that had nothing to do with the spill are also selling at a senseless discount. Here are three ideas:
ATP Oil & Gas
Finally, Cobalt International Energy
Fool contributor Toby Shute doesn't have a position in any company mentioned. Check out his Motley Fool CAPS profile or follow his articles using Twitter or RSS. The Motley Fool has a disclosure policy.