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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: i-node who wrote (228501)	4/9/2005 7:52:25 PM
From: neolib	Read Replies (1) \| Respond to of 1578002

Suppose one's business consists of buying a raw material, processing it, then selling the result for 2x the cost of the raw material. Now suppose the cost of the raw material doubles. Your production costs stay essentially constant, but your new sales price is also doubled. For the same quantity of product, you are now making almost double the money, but your profit margin remains essentially constant. As long as end consumption does not decline, this is an excellent business to be in, collusion or not.

To: i-node who wrote (228501)	4/9/2005 8:40:55 PM
From: SilentZ	Read Replies (1) \| Respond to of 1578002

>Can you prove that any such collusion exists? >Can you, in fact, prove that increased oil companies' profits resulted from these price increases? How 'bout the bottom line? 2004 -- 25.3 billion 2003 -- 21.5 billion 2002 -- 11.5 billion Projected 2005 so far? Over 32 billion. >Now, I've shown you how I know you're wrong. You explain to me why you think you aren't. Done and done. -Z

To: i-node who wrote (228501)	4/9/2005 8:55:36 PM
From: Mani1	Read Replies (1) \| Respond to of 1578002

Re "Can you, in fact, prove that increased oil companies' profits resulted from these price increases?...I think you'd be hard-pressed to make your case, given that they are generating LESS profit margin per revenue dollar every year." Margins are down because raw material is up, of course. The fact that they are down just a bit when raw material has more than doubled is amazing. And it shows that most of the cost of raw material is being passed on with a MARK UP, thus the improved bottom line. If you look at the bottom line you will see oil company's are greatly benefiting. Look at their earnings, stock price etc. Comon David, this is obvious. I am not saying that it means they are doing something necessarily wrong. Mani

To: i-node who wrote (228501)	4/10/2005 4:14:24 PM
From: tejek	Read Replies (1) \| Respond to of 1578002

Hint: Exxon's gross profit margins in '02, '03, and '04 were: '02 55% '03 47% '04 45% I don't know from where you are getting your data but net profit margins [a more accurate indicator] ran higher for XOM during 2004 than for the prior 5 year average: 8.50% [2004]] vs 7.25% [5 year average]; that 1.25% increase may seem small until you consider the size of XOM's revenues and expenses. In other words, a 1.25% increase is a significant increase in profits. XOM has benefited mightily from the huge increase in crude prices as have all the oil and natural gas players in the US. Seriously, dude, who do you think you're foolin'? You're as bad your party and president. yahoo.investor.reuters.com