contracontrarian

The T. Boone Pickens Approach

Yes, COP is IMO a sell.

Higher oil prices don't necessarily mean significantly higher profits over the long term,they only mean higher revenue.
Profit margins change for most businesses over time and are influenced by many different factors (even political,in this case).
Profit margins for Big Oil as % of revenue will be certainly lower over the next decade,compared to recent years,the market will correct the windfall-profits,which originated in the huge rise in revenue in recent years.

Declining industry margins will hit COP stock price and bottom line much harder than XOM/CVX ,because of its debt and generally lower profitability.

The T. Boone Pickens Approach

"The analysts are now predicting COP will earn over $13/share in 2008. The stock is currently at $82 and change, which is a 6 month forward PE of just over 6 (!?). On the day their earnings came out, COP traded down, and GM traded up most of the day. Crazy market indeed!"

Investors are selling COP at 6x forward PE (!?).Crazy...
Are those selling investors dumb or smart?
It's easy to understand dumber people,but often hard, to understand people,who are smarter than oneself.

Time wil tell...