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Gold/Mining/Energy : Oil Sands and Related Stocks -- Ignore unavailable to you. Want to Upgrade?


To: insitusands who wrote (15545)3/22/2007 4:00:54 PM
From: james flannigan  Read Replies (2) | Respond to of 25575
 
In the world of investing there are two types of investments,they are franchise and commodity.Inventions in the start of their life have a franchise quality as they are hard to copy,or like Coke have a formula unlike the other brand. Over time most franchises become commodies as the product is the same as the other suppliers of that commodity, and do not have a brand like Coke or Pepsi. Oil in its early days of discovery 1865 had a franchise like quality as only limited supplies of "rock oil" was found.Oil was going at that time replace Whale oil for lamps at a cheaper price.This was the way it was during the very early days of oil discovery.What happened next was like the gold rush of 49.That in turn lead to an over supply of new discoveries and oil was selling for 1 cent a brl.At that point history was made as oil lost it franchise and became a commodity.History teaches us that what goes around comes around.We may be viewing the oil sands in the commodity status at present,when in fact in an oil shortage they are really a franchise.I have concluded that oil sand companies may be franchises,and if so should carry franchise like stock prices. James