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Re: Obscene profits???? » Dinah

Posted by AuntieMel on March 21, 2006, at 8:54:44

In reply to Re: Obscene profits???? » special_k, posted by Dinah on March 21, 2006, at 7:56:43

Unfortunately, that just isn't the case with oil companies. People hear "36 billion profit" and go ballistic without considering the size of the company or it's percentage of profit compared to revenue.

The only reason for congressional hearings is that they are oil companies and the constituants don't like the price of gasoline. As in all past hearings of the sort, they will find that there was nothing illegal going on, but meantime they eased the folks back home.

It would be nice if senators - and the media - would actually come out and say that those are *not* unreasonable returns.

Most investors aren't even happy with a 10% rate of return. If I remember right, Exxon's stock went *down* because of those numbers.

 

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URL: http://www.dr-bob.org/babble/poli/20060304/msgs/622830.html