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Thursday
Jan042007

Exxon Most Disliked by Scientists (and Overpriced) Of The Oil Companies

ExxonMoble (XOM) gets caught trying to suppress science on climate change and hurt the planet for profit. (See Reuters article) I had a link to the ExxonMobile response but they seem to have taken it down from their website on Corporate Citizenship. 

I want exposure to the oil, gas and energy industries. Energy will only get more important as China and India continue to industrialize and become consumers.  But Exxon is not the best way to play this exposure.   At a p/e of 11.1 and a growth rate no better than other huge oil companies I can find better value and better morals (if only slightly sometimes) picking other energy companies.  The oil companies and the trailing P/E ratios of companies I do own are as follows:

Conoco Phillips (COP): 6.4
Occidental Petroleum (OXY): 8.0
Andarko Petroleum (APC): 5.2
Chevron (CVX): 8.9
BP - ADR formally British Petroleum (BP): 9.8
Statoil (Norwegan State Oil Co) (STO): 9.6

If Exxon were a real bargain, I'd hold my nose and buy it.  Then I'd vote my proxies with some of the shareholder resolutions bent on trying to get Exxon management to behave themselves.

Disclosures and Confessions:   Except for Exxon (XOM) I own and have traded in the last two years) all the stocks named above.  If I were to sell any of the oil companies named above it would be Statoil first.

Disclaimer:  Nothing in this blog is meant to be specific financial advice or a recommendation to buy or sell.  I do not give investment advice.  Do your own research.  Do not rely on anything in this weblog to make investment decisions.  I do not log all my trades here. I only describe or mention those that I think might be interesting. Consult an investment professional familiar with your specific financial situation before buying or selling any security

 

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