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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (27914)	8/29/2007 11:17:47 AM
From: E_K_S	Read Replies (1) \| Respond to of 78753

Hi Paul - I followed your call on BP and upped my position. It's now one of my top 10 holdings along with XOM and CVX. What do you think of COP at current prices? It pays only a 2% dividend and has a higher PE at 12. I started a small position last year at $64. I will probably will wait for a better entry point on this one. The dividends for the integrated oil companies have always been quite good relative to the S%P dividend payout and the five year growth continues to be strong. Based on the chart below, BP is the best "value" buy now based on their relative PE and dividend payout. finance.yahoo.com^gspc+cop;indicator=dividend+volume;charttype=line;crosshair=cross;logscale=on;source=undefined EKS

To: Paul Senior who wrote (27914)	8/29/2007 2:37:48 PM
From: Marc Hyman	Respond to of 78753

Regarding BP... P/e is about 10 OK, I'm confused. Diluted normalized EPS for the last 4 quarters (according to google) is 0.70 + 0.23 + 0.13 + 0.31 = 1.37/share. At the current price that works out to a P/E of almost 48. The PE based upon operating cash (as reported by google) is almost 52. Obviously I'm looking at something wrong because google reports the P/E as 8.24 -- close to your "about 10" number. Application of the appropriate clue-stick would be appreciated. Thanks, // marc