Why COS Is Usually Undervalued I think the reasons why COS usually trades at lower P/E and P/CF mulitples than most other O&G companies are: 1) the significant amount of capex COS will spend over the next couple of years 2) Fear / uncertainty over the future of Keystone, Northern Gatway, etc. 3) The fact that COS is a pure, unhedged play on the oil sands.....investors see all the bad publicity the oil sands get in both Canada and the USA and get nervous, likely opting for a more diversified O&G company. Nonetheless, I like COS as an investment - especially under $20 / share. Management appears very competent IMO, and I think Keystone will likely be OKed by the Obama Administration (Northern Gateway, on the other hand, might be more of a longshot - especially if Native Canadians launch consititutional challenges). Even though COS will have to wait until TRP completes its construction of the Keystone pipeline (should it get approved) before taking advantage of it, most in the investment community base their buy and sell decisions on expected future earnings, and if Keystone is approved, future earnings potential for COS will be greatly enhanced. Not sure if COS would get a big immediate bump in the share price, but it should appreciate considerably as pipeline construction moves forward.