Could someone please tell me what’s wrong with this company?

ConocoPhillips (COP). Market Cap of $100B even, Profit Margin is 9%, Operating Margin at 13%, Currently selling at 5.6x earnings – the lowest in the industry – and at 1.3x Book Value. This franchise is making money, regardless of the recent drop in oil. Revenue grew at 15% while earnings growth was 64.4%. In addition this company holds 20B in cash. I even believe Warren Buffett owns a few shares.

Many oil stocks are undervalued in my opinion based on the P/E ratio and the fact that when oil regains its losses oil stocks will rise with them as they have in the past.

Update: February 20, 2007

COP rose from $58 to over $74, and the declined to a present $66 a share. An increase of 14%.



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