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Pastimes : Discussion Thread -- Ignore unavailable to you. Want to Upgrade?

To: SeachRE who wrote (209)	6/6/2008 4:54:48 PM
From: TimF	Read Replies (1) \| Respond to of 3816

Oil=$139.12 True Out of the ground cost=$10 Probably less for the lowest cost wells in Saudi and Kuwait, but more for many American wells. In any case its not a very important piece of information. Gross profit=1300% Probably exaggerated slightly, but more importantly almost meaningless. Net profit is a more important concern in almost any case. And in the specific case of how much a commodity should sell for, it has little to do with the gross profit amounts its a simple matter of supply and demand. If you bought Microsoft a long time ago and your split adjusted price was around 27 cents would you sell your shares for that price? Things are worth what people will pay for it, the cost you paid to obtain it is almost meaningless in this context.