Calif Bill wrote:
"John H" wrote in message
...
On 23 Mar 2005 11:10:21 -0800, "basskisser"
wrote:


Calif Bill wrote:
"basskisser" wrote in message
oups.com...

Calif Bill wrote:
Well, my Chevron stock has doubled in value and I also get a
nice
dividend.
Helps with the fuel bills.

Well, I'll ask again. Do you honestly think that if you pay
MORE
for
gas, that that somehow equates to more money from oil stock?
You DO
know that stock value and the price at the pump have very
little in
common, don't you?


Back to basskisser, EH? Lots of your side has been saying the
price
is run
up to get more profit. Well, more profit, means more dividends
and
price of
stock goes up. Simple.

Lots of my "side"? What is my side, Bill? Hmm, so, now, you are
saying
that because you pay more at the pump, you'll MAKE money????
Here's a
little simple point for you, Bill. Because the price at the pump
goes
up, doesn't mean a damned thing to the end profit. It's the price
of
CRUDE that's went up. Therefore, Chevron paid more for the crude,
passed that to the pump. Profits did nothing. Let's simplify it.
Say a
grocer sells tomatoes for 10 cents a piece, and they cost him 5
cents.
His supplier starts charging 7 cents, he passes that to you, by
charging you 12 cents. His profit hasn't changed.

Wrong idea. The grocer has a profit margin of 100%. So, when the
price
goes to 7
cents, he raises the price to *14* cents. He's now making an
additional
two
cents profit.
--
John H

"All decisions are the result of binary thinking."

And CVX also owns a few billion barrels of crude reserves. Whose
value just
went up also. It still hurts at the pump, but the hurt has a nice
palliative at dividend time. Basskissers argument ignores that the
supplier
is also the manufacturer.

Hey, Bill, go read the NASDAQ headlines for yesterday!!!!! First one
out of the gate: Oil stocks down because of rising crude
prices!!!!!!!!!!!!!