The Rise and Fall of Oil: Roach Motel Theory [View article]
According to your logic Phil, where should the DOW be? At 7000 or should we go back 40 years and 1000 is the correct accumulative value?
We get XOM earnings this week. Try to be a bit objective and then value the stock. The old 1 to 1 ratio doesn’t work anymore. Try applying 1.18 to 1. The reason is simple. 1 to 1 is stock to oil price up to about $35. Once above, the fixed costs start coming down drastically as a percentage of sales, resulting in increased margins. Also throw in a 7% lower share count and at $55 oil you’re at 1.18.
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According to your logic Phil, where should the DOW be? At 7000 or should we go back 40 years and 1000 is the correct accumulative value?
Oct 23 09:00 am
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All Comments by CrossProfit_ »The Rise and Fall of Oil: Roach Motel Theory [View article]
We get XOM earnings this week. Try to be a bit objective and then value the stock. The old 1 to 1 ratio doesn’t work anymore. Try applying 1.18 to 1. The reason is simple. 1 to 1 is stock to oil price up to about $35. Once above, the fixed costs start coming down drastically as a percentage of sales, resulting in increased margins. Also throw in a 7% lower share count and at $55 oil you’re at 1.18.