I first heard of COP a few days ago in the comments of one SeekingAlpha article which also spoke of the importance of buying natural gas at lows and the possibility of trains being converted to run on natural gas.
The divided is decent.
But they are selling assets.
Can anyone tell me if it is worth buying COP?
You are sadly correct. I've been bitten a couple of times, but fortunately I invested so little money and my investments were so diverse the loss was minimal.
But maybe if you look for some kind of confirmation or as such extra source of information it might work out.
Company websites have presentations available publicly.
I hope ConocoPhilips works out well. They have diverse assets and are a reasonably large company. Their website seems to say they are keeping debt to assets ratios low.
miltonverdoot is right on the mark. If you can tell by looking at the fundamentals of a stock this message board is last place to consult before making your decision.
I am long COP and like the dividend but,,,,,,, do your homework. Look over the balance sheet. Look at the cash flow, revenue, growth debt etc. Don't consider buying anything until you have put in 40 hours over a few weeks learning all you can.
It is true that COP is selling assets and retrenching to N America. A big part of their forward strategy is chasing non-conventional oil and gas plays. Most unbiased parties are forecasting a gas glut for the next few years so you shouldn't expect to see growth in the value of their large gas assets. Oil prices are also falling. So I see them as a pure proxy on oil & gas prices, which are both falling.
As far as political risk, you should consider the current environment in the US to raise taxes.
when I talk of political risk, I am talking about nationalization, blowing up oil fields, killing workers, the third world nations that I wouldn't visit on vacation because of risk to personal life. Unstable govts are not necessarily where taxes are high. But taxes are going up under the Obamacare scenario and also to a lesser extent under fiscal cliff legislation.
they are selling assets in foreign countries and concentrating on the USA were new technology will make us the largest oil producer in the world and the NG assets will make us totally independent of foreign energy. This will reduce the political foreign risk involved and concentrate them here. I personally believe it will enrich stockholders and provide a great revenue stream of dividends. They are ahead of all their competition on this matter and a very astute move IMO. The downgrade is an opportunity for you and you should take it. AS this fiscal cliff wears off you need to get your position on. I have been in it for over 3 yrs, got a $17 spin off per share and $8 plus in dividends and still up $8 more on the stock. The spin off is now $26 per share. I think it has had a great return close to a double in 3 yrs of my original investment not including covered option income.
many co sell and trade assets all the time, nothing wrong with that.
COP has very very high EPS, great and makes lots of profits.
Good dividends. and huge potential for appreciation of pps.
Sentiment: Strong Buy