Owned by Gurus Buffett, Wallace Weitz, George Soros, David Dremen, and many others, COP is perhaps the cheapest integrated oil company in the world.
Using 2010 Value Line estimates, and a $50 share price, COP trades at a PE ratio of 8.8, a P/CF ratio of just over 4 and a price to book value ration of just 1.2. In addition, COP pays you to be patient with a dividend yield of just under 4%. These are all attributes of a stock Warren Buffett loves to own, which is probably why he controls 5.7 % of the company.
COP earned $10.66 per share in 2008. If it can match that tally a some point in the next three years and trades at a PE of just 8, you would have an $85 stock which would equate to a 70% return not including dividends.
In addition, COP owns 20% of Lukoil worth a tad over $10 billion dollars as of 10/28/09.
This stake gives COP a strategic partnership in Russia with its vast natural resources. COP also owns 37% of Syncrude, a large oil sand project in Canada which it is considering selling. Its value is estimated at about $3.3 billion.
Any investor looking to gain exposure to the energy sector should look here. Even with the low probability of a significant decline in oil prices, especially with world economies beginning to grow again. COP's secure and growing dividend give you a strong measure of safety and a free call on rising oil prices.
Using 2010 Value Line estimates, and a $50 share price, COP trades at a PE ratio of 8.8, a P/CF ratio of just over 4 and a price to book value ration of just 1.2. In addition, COP pays you to be patient with a dividend yield of just under 4%. These are all attributes of a stock Warren Buffett loves to own, which is probably why he controls 5.7 % of the company.
COP earned $10.66 per share in 2008. If it can match that tally a some point in the next three years and trades at a PE of just 8, you would have an $85 stock which would equate to a 70% return not including dividends.
In addition, COP owns 20% of Lukoil worth a tad over $10 billion dollars as of 10/28/09.
This stake gives COP a strategic partnership in Russia with its vast natural resources. COP also owns 37% of Syncrude, a large oil sand project in Canada which it is considering selling. Its value is estimated at about $3.3 billion.
Any investor looking to gain exposure to the energy sector should look here. Even with the low probability of a significant decline in oil prices, especially with world economies beginning to grow again. COP's secure and growing dividend give you a strong measure of safety and a free call on rising oil prices.
