Why is COP pe ratio so low? Should I buy ConocoPhillips now? October 9, 2006Posted by deminvest in COP ConocoPhillips, Single stocks, stock I own, stocks, stocks that pay high dividends.
Two interesting quentions. I will write this blog in a short time because I already know my answer to the second one is yes.
Being a proletarian investor and part of the herd, I always want to place my orders fast. My investors decisions are based on irractional impulse. I am so convinced COP at P/E 5.35 is a total bargain also because I got to know that Warren Buffet invested heavily on COP too, but he bought at a price higher than what I will be able to get.
What I also like very much about COP it the fact that it has the chaepest BOE on the oil business. Meaning that its oil reserves are priced cheaply.
One of the reasons that make ConocoPhillips cheap is the fact that COP expects third-quarter oil and gas production to be down about 5 percent from the second quarter, due in large part to problems at the Prudhoe Bay field in Alaska, the oil major said on Tuesday.
More than half of the production drop was from Prudhoe Bay, which was shut down by operator BP Plc (London:BP.L – News) in early August because of a leaking pipeline. ConocoPhillips owns 36.06 percent of the oil field.
The company said planned seasonal maintenance at operations in Britain and Venezuela also hurt production.
I buy COP because it has:
P/E (ttm, intraday): 5.37
Qtrly Revenue Growth (yoy): 15.40%
Qtrly Earnings Growth (yoy): 65.30%
Forward Annual Dividend Yield: 2.50%