[MrHobbes]

I haven't had the time to look at the numbers myself recently, but I have heard from some oil industry friends that I know that Exxon is currently in a state of slow-motion liquidation.

From what they are saying, exploration and expansion has not really taken a high priority within the company in recent years, and the emphasis seems to be more on maintenance.

I don't really know about the extent to which this is true, but if this is the case then it could possibly explain the low p/e ratio.

Personally, I think that the problem with Exxon is that it is an oil company and oil prices are connected with world economic outlook. (Most economic activity requires energy, which oil just happens to be a great source of.)

World economic outlook is a bit grim right now, so Exxon's outlook is as well. When economic activity heats up again then oil prices will rise, and, at that point, I am quite sure that Exxon will be doing quite well again.

This post does not constitute investment advice.