oil 3

We have to add the caveat that our comments above will not mean too much if the price of oil has a significant decline. At this moment just about all of our commodity stocks are prone to trouble if the commodity gets in trouble.

The second oils stock is Talisman ($     ) which is even cheaper than CNQ. At its low on Monday Talisman was selling at 3.7 times estimated 2006 cash flow. We should add that for these oil producers six  times cash flow is about the acceptable standard.