HKrause wrote:
basskisser wrote:
John H wrote:

On 24 Mar 2005 05:18:41 -0800, "basskisser"

wrote:

John H wrote:

On 23 Mar 2005 11:10:21 -0800, "basskisser"

wrote:

Calif Bill wrote:

"basskisser" wrote in message
oglegroups.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


Have you ever heard of supply and demand? IF he raises the price
of

the

tomatoes too high, no one will buy them, then the "stock" would
go....DOWN.....

You were the one who provided the example. I just corrected your

reasoning.

You "corrected" nothing, John. You simply gave a different
scenario,
and it is flawed. The consumer won't stand for an infinite rise in
prices.



Hmmmm. Would this be drip up or drip down economics?

Damn it, Harry, you'll NEVER understand republican voodoo economics,
will you? It's trickle down, so the inverse MUST be drip UP!!!