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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (60165)	2/8/2005 4:38:09 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 74559

<allowing folks like Maurice to speak ill of finite resource Vermilion paying 10% when compared against the infinite electrons of QCOM paying effectively nothing ?> Which is why I thought QCOM would decline in price, for a year or three, until the earnings and dividends ramp up to multi Happy Meal status. Speaking ill of Vermillion was because gas and oil prices are at a temporary high. Energy production costs are much lower, so production of energy will boom until production costs and prices are again in balance with other earning opportunities. As said here by Elroy, high profits are competed away and earnings tend towards bank rates if there are no barriers to entry. At $40 a barrel, huge profits of astronomical proportions are being made. Every man and his dog will want in. Even bioethanol will be boosted. So Vermillion's earnings will revert to normal [I should probably not refer to them as I have no idea at all what they do - so I am using Vermillion to mean Energy Producers Unlimited] and QUALCOMM's will continue to increase, thanks to their monopoly on CDMA with very high barriers to entry [Lula, Jintao and ilk have to contrive to steal their intellectual property, defended by my buddy King George II, the war president, paid by high taxes given by QUALCOMM, MSFT etc]. It's not the profits yesterday and today that matter. It's the profits tomorrow. Mqurice