Quote:
Originally Posted by ZZ3ElCamino
Too bad the oil industry can't give up a "little" profit to HOLD prices. They have record profits every quarter!
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ZZ3ElCamino:
Don't give too much credence, to what you here in the Media about their record profits. They are playing a game with the number and how they state the numbers.
For instance:
Exxon and Mobil merged to form one company. Both of those businesses were huge before they merged, so when you combine the sales of both and/or the profit, it will almost ALWAYS be a "Record".
If you will review the records that the SEC requires to be exposed, you will find that:
1. Yes Record Profits, but
2. Net Profits are only 10.2% of sales
Damn few companies you do business on a daily basis will have profit margins that low. Home builders run 30-50%. Restaurants profits are a bit smaller depending on which segment of the market they service. McDonalds is a Volume supplier with smaller margins, while Ruth's Chris Steaks will have higher margins.
If you invest in the market, you can get investments that are safe, AND, you don't have to do anything more that collect a check. They can pay you 8-12%.
10.2% is NOT an excessive Margin at all. However the A$$holes in the Media do their very best to demonize all large corporations by quoting just the Dollar amount of profits without putting it in perspective with the size of their total sales.
The media is there to sell news. The bigger the news, the bigger their audience/profit. (If it bleeds, it Leads)
Don't let them get your panties in a wad. Much of what they report is pretty biased.
Does this make sense?
Ty O'Neal