The general rule when buying and selling energy and commodity names is the reverse to other stocks; "buy when P/E ratios are high and sell when P/E ratios are low". This strategy would work like a charm right now, if and only if, the energy and commodity bull market is coming to a close. That is, the cycle is turning and these things will come crashing down without touching the sides. You want to be selling when earnings have grown so high that when they're compared with the stock price they produce a very low P/E ratio.
Keeping with the theme of 'is oil dropping to $60/barrel?' Here are some of the Price to Earnings (P/E) ratios and yields that the market is currently offering for these names:
Petro Canada (PCA) - P/E= 5.8, Yield = 1.7%
Conoco Phillips (COP) - P/E= 7.5, Yield = 2.4%
Exxon Mobil (XOM) - P/E= 9.5, Yield= 2.1%
Husky Energy (HSE) - P/E= 9.4, Yield = 4.4%
Canadian Oil Sands Trust (COS.UN) - P/E= 14.0, Yield = 10.3%
Chevron Corp. (CVX) - P/E= 9.2, Yield = 3.0%
BP PLC (BP) - P/E = 9.1, Yield = 5.7%
Devon Energy (DVN) - P/E= 9.9, Yield = 0.7%
These things are all trading as if their earnings growth is done. They are likely all pricing in earnings growth of less than 6% going forward (at most). In the face of production that is becoming more and more difficult to grow, their futures likely depend on the price of oil. Where is it headed?
Conoco Phillips chart below: