You scratch your head and start to wonder about this stock. Does Uncle Fred really know what he's talking about? Oh, he forgot to tell you one other thing: the company is about to owe billions of dollars in retribution and there's a possibility it may go bankrupt.

The company Uncle Fred is promoting is BP, the gas and oil giant that has created one of the worst environmental disasters in the history of the world. The same BP that has been ham-handed in solving an on-going leak of oil into the Gulf of Mexico, a spill that is threatening the ecosystem and endangering lives and livelihoods of thousands of people in the area.

But given all of the bad things going on with BP, is the company a viable investment worth considering? Some analysts believe that British Petroleum is in a fine place for an investor or a trader to contemplate a trading decision.

Here are some reasons why you might want to consider buying BP, despite its stressful situation:

• The stock is on sale. On Jan. 19, 2010, the stock sold for $62.38. It began to roll over after the April 20 incident that included the explosion on an oil rig that took 11 lives and caused the rig to sink. The accident opened a well that dumped thousands of gallons of crude oil into the Gulf of Mexico each day. As the days dragged by with no resolution, BP stock began to fall and fall and fall. It seemed to find a bottom at the end of June when it sold for $26.75. The stock was selling for more than 50 percent off its high of the year, making it a candidate for possible purchase.
• Oil is only going to increase in value. As the global economy continues to recover, the demand for oil will likely keep growing. Over the long term, BP is in a position to continue to provide oil to America and other countries. It controls a valuable commodity.
• There's also the chance that BP will be purchased by another company. If that happens, the value of company will very like be increased.

On the other hand, there are other reasons that would cause you to think twice about investing in BP.

• The company is losing money hand-over-fist, through lost revenues, via government fines and lawsuits, and by the American public as it attempts to boycott BP's shops and products.
• There was still no end to stopping the leak by the end of June. Some officials are saying the matter won't be solved until August or September and others feel those dates may be optimistic. The oil has already reached cities and beaches on the Gulf Coast and could be carried into the Atlantic Ocean by the prevailing currents.
• BP is going to face millions of dollars in fines and lawsuits. How much money does the company actually have? Is it going to reach a tipping point, one where BP simply declares bankruptcy and stops hemorrhaging money?
• What about the BP brand? What is it going to be worth in the future? Is it destined to joined the ranks of vilified products such as WorldComm or Enron, two companies that ruined thousands of lives when they collapsed.

Should I invest in BP?

What's the smartest path to take? Such a decision requires a lot of examination and evaluation and no action should be taken without understanding all the possibilities. The best starting point is by obtaining a quality stock market education, such as one offered by BetterTrades. The company has classes designed to teach you how the market operates and how to make smarter decisions when it comes to investing and trading. BetterTrades has free classes available on its website that is accessible to interested visitors each day.

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