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Why is COP pe ratio so low? Should I buy ConocoPhillips now? October 9, 2006

Posted by deminvest in COP ConocoPhillips, Single stocks, stock I own, stocks, stocks that pay high dividends.
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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.LNews) 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%

Comments»

1. K Irvin - October 9, 2006

I am betting, and I do mean betting on October 60 calls. This stock is in the exact same “bullish falling-wedge” pattern as it was when it formed its previous bottom back in June when it bottomed out at $58 and then climbed steadily to $69 and now we are seeing the same type of behavior, I hope!

2. deminvest - October 11, 2006

I did bet my October budget on COP, but 60 is not enough for me:

I bought 16 COPs at USD 60,5176 each for a total expense of $ 968,28. My target price is $80!


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