SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Arconenergy, Inc. (Long Term Investors and Fundamentals)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Redfisherman who wrote (895)4/19/1998 5:01:00 AM
From: Kurt N  Read Replies (1) of 1757
 
LOL. One of the ways to become extremely successfull in a competitive business is to offer a superior product and (if possible & with decent profits) undercut your competitors.

I need to do more reasearch into what the value of an octane barrel index is, but for now I'm going to assign a value of $2 (that is a lot more than $1.28 percentage-wise).

If they sell for $1.28 (which you saw is low) and it costs Arcon .88, they still make about a 50% profit. Assuming that the index price is $2, the cost for everybody else (assuming that they desire a 50% profit also) is $1.33.

Yep. That's right everybody else would lose $.05/gallon if they tried to match Arcon's price, and if they did Arcon could lower their price to $1/gallon (and still make a profit) vs a loss of $.33/gallon.

And I'd never have thought of this scenario until you pointed it out. You've helped me really appreciate what Arcon has got here.

Even if you are right about the DF-144, this company still has the natural gas&oil fields and will be profitable. Something else to consider, instead of Arcon having to buy natural gas for the manufacturing of the DF-144 they can get it from their fields AT EXTRACTION COST.

Kurt
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News