British Petroleum Might Be a Good Buy (NYSE: BP)

British Petroleum BP is currently down 14% at $37 in the pre-market. BP's stock has been hit heavily due to the recent oil spill. However, I think investors might be over-reacting. A quick look at BP shows the following. The stock is at 52 week low. BP traded as high as $62 per share only several months ago. BP will surely have a huge legal fine for their role in the recent oil spill. However, their cash from operations in 2009 was $28 billion. Their balance sheet is not great, but decent. BP's forward P/E is less than 5, and the stock has a dividend yield of over 8%. Seems like a buy to me. Disclosure: Long BP