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Exxon Mobil doin all right
01-31-2009, 09:58 AM
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#1
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Full time employment: Posting here.
Join Date: Oct 2007
Location: Montreal
Posts: 940
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Exxon Mobil doin all right
Exxon Mobil breaks its own profit record - Times Online
Thinking about the prices i was paying at the pump last year, obscene profits like this kinda piss me off.
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"Second star to the right and straight on till morning"
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01-31-2009, 10:01 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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Would you prefer it if they were losing tens of billions of dollars and needed a taxpayer bailout?
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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01-31-2009, 10:01 AM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,021
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Quote:
Originally Posted by jambo101
Thinking about the prices i was paying at the pump last year, obscene profits like this kinda piss me off.
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What really tics me off is I don't have much Exxon Mobil stock in my portfolio.
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Numbers is hard
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01-31-2009, 10:28 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Aug 2006
Posts: 2,433
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Quote:
Originally Posted by REWahoo
What really tics me off is I don't have much Exxon Mobil stock in my portfolio.
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It's 4% of the S&P 500, so you may own more of it than you think.
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01-31-2009, 11:22 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,891
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Quote:
Originally Posted by jambo101
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Quote:
Originally Posted by ziggy29
Would you prefer it if they were losing tens of billions of dollars and needed a taxpayer bailout?
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Yes, I really don't understand this angst.
Let's see, a big company loses money - and some people are up in arms. "The economy is tanking, there will be lay-offs, the end is near".
Then, a big company makes money, and they are "pissed off".
So, questions for jambo101:
What is the profit margin of Exxon Mobile?
How does that compare with the average in the S&P 500, or 100?
What are the top five profit margins in the S&P 500, or 100?
Should we "do something" about it?
-ERD50
PS - another odd one for me is people complained when gas prices were up and house prices were down. Can't please some people I guess.
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01-31-2009, 11:31 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,891
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Wow, that is bigger than I thought. It bumps into that old diversification guideline of no more than 5% in any one stock.
From yahoo:
SPY: Holdings for S&P DEP RECEIPTS - Yahoo! Finance
TOP 10 HOLDINGS ( 22.88% OF TOTAL ASSETS)
EXXON MOBIL CP XOM 5.30
PROCTER GAMBLE CO PG 2.46
GEN ELECTRIC CO GE 2.30
AT&T INC. T 2.14
JOHNSON AND JOHNS DC JNJ 2.09
CHEVRON CORP CVX 2.07
Microsoft Corporation MSFT 2.02
WAL MART STORES WMT 1.60
JP MORGAN CHASE CO JPM 1.49
PFIZER INC PFE 1.41
and with Chevron at another 2.3%, that is 7.6% in one industry right there, before the smaller guys get added.
-ERD50
ps: argggghhhh - even after I chose a fixed font, and padded with spaces to line it up nice and neat, it still mushed it together.... Any way to paste in a list and get it to align?
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01-31-2009, 11:37 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Aug 2006
Posts: 2,433
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Quote:
Originally Posted by ERD50
So, questions for jambo101:
What is the profit margin of Exxon Mobile?
How does that compare with the average in the S&P 500, or 100?
What are the top five profit margins in the S&P 500, or 100?
Should we "do something" about it?
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All good questions, and I am looking forward to jambo101's response.
This is so typical of the way the media reports news items. They like to "shock" people by saying "XOM earned $45 billion in 2008". What they don't say, is that XOM has a market cap of nearly $400 billion, so we're talking about a roughly 11% ROE, and that's in a very good year.
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01-31-2009, 11:43 AM
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#8
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Thinks s/he gets paid by the post
Join Date: Aug 2006
Posts: 2,433
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Quote:
Originally Posted by ERD50
Wow, that is bigger than I thought. It bumps into that old diversification guideline of no more than 5% in any one stock.
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Geez, do you think I should be shorting some XOM against my Vanguard S&P 500 index fund to bring it back down under 5%?
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01-31-2009, 11:46 AM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,891
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Quote:
Originally Posted by FIRE'd@51
This is so typical of the way the media reports news items. They like to "shock" people by saying "XOM earned $45 billion in 2008". What they don't say, is that XOM has a market cap of nearly $400 billion, so we're talking about a roughly 11% ROE, and that's in a very good year.
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So (tongue in cheek here), the *obvious* solution is to break XOM up into 10 smaller corporations. Then they can *all* report a profit that will be under the radar screen. And, assuming that XOM gains economy of scale from its size (not a guarantee - it might be a burden), all those mini-XOMs will need to charge more to make the same profit. Of course, now that they are under the radar, they can make even MORE profits in total, and no one will complain.
Yep, that'll fix it .
-ERD50
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01-31-2009, 12:21 PM
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#10
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Moderator Emeritus
Join Date: Sep 2007
Posts: 17,774
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The first headline I saw on Exxon's report was that they didn't make their expected numbers (so the sky is falling). Only when I clicked on it to read further did I see that the company still made a record amount (so the sky isn't falling ). Perspective is everything.
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“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
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01-31-2009, 12:23 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Location: North Oregon Coast
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Quote:
Originally Posted by Bestwifeever
The first headline I saw on Exxon's report was that they didn't make their expected numbers (so the sky is falling). Only when I clicked on it to read further did I see that the company still made a record amount (so the sky isn't falling ). Perspective is everything.
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Just like yesterday's GDP report.
One can say it was the worst result since 1982 and thus we're doomed. On the other hand, you could say it was considerably better than expected. Half empty or half full?
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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01-31-2009, 05:35 PM
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#12
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Full time employment: Posting here.
Join Date: Oct 2007
Location: Montreal
Posts: 940
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Quote:
Originally Posted by FIRE'd@51
All good questions, and I am looking forward to jambo101's response.
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What bothers me about these profits is that they were made because of pricing that had no connection to cost of production or demand. I find it a bizarre system where large companies are free to exploit regular citizens as much as they can with no government interference but the minute things go the other way, the government is there with bags of cash.
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"Second star to the right and straight on till morning"
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01-31-2009, 05:57 PM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Location: Northern IL
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Quote:
Originally Posted by jambo101
What bothers me about these profits is that they were made because of pricing that had no connection to cost of production or demand. I find it a bizarre system where large companies are free to exploit regular citizens as much as they can with no government interference but the minute things go the other way, the government is there with bags of cash.
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You didn't answer the questions. Instead, you made unfounded allegations, and threw in a red herring. Why is that?
We get the gas we need for our cars, they make a profit margin of X% ( find that number yet?) for the risk they take and investments they make ( it isn't easy finding oil any more, and it takes a lot of investment and research and technology). Is that exploiting us, or offering a service at a fair price?
I'm not in favor of govt bailouts in most cases either. But that's a red herring. We aren't talking about govt bailouts, we are talking about why anyone should be so upset with Exxon Mobile making a profit, just as businesses are supposed to do. You called it an obscene profit.
Come up with that list of companies that make a higher profit margin, let's see if they are all obscene too.
-ERD50
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01-31-2009, 06:24 PM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Well, I'm going for dinner, so here's a few to start you off:
This only returns the top 25 in the list, so when I sort S&P500, (Large Cap to limit it further), for highest profit margin, XOM doesn't even come close to making the list.
Search Results - MSN Money
Corning, Public Storage, Adobe, Oracle, Linear Technology - are they all "exploiting" us by multiples of what XOM is?
And restricting to the DOW:
top down -
Search Results - MSN Money
bottom up -
Search Results - MSN Money
Hmmm, XOM in the middle of the pack. 13 above, 16 below. Sure, we need more companies like GM. No one will accuse them of making "obscene" profits.
-ERD50
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01-31-2009, 06:30 PM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
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01-31-2009, 07:10 PM
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#16
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Full time employment: Posting here.
Join Date: Oct 2007
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I must have mixed up my forums and this forum wasnt one of those that had topic after topic complaining about getting ripped off by oil companies charging exhorbitant amounts for the price of gas last summer as now the profits are in every one here seems to think it was a really good business move. Yeah bring on the $10 a gallon oil in that case,its just good business.
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"Second star to the right and straight on till morning"
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01-31-2009, 08:43 PM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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If Big Oil had the price-fixing power you seem to claim, why would they let oil prices fall from $145 to $40 in less than six months?
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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01-31-2009, 08:45 PM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,891
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Quote:
Originally Posted by dex
How about Shell Oil 0- maybe they can become a bank and get TARP money.
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[satire]Yes, poor company. It really POs me that a bunch of greedy customers are exploiting that company - taking money from them from like that, buying their product at a loss, with " no connection to cost of production or demand". It's "obscene". [/satire]
-ERD50
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01-31-2009, 08:50 PM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
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Quote:
Originally Posted by jambo101
I must have mixed up my forums and this forum wasnt one of those that had topic after topic complaining about getting ripped off by oil companies charging exhorbitant amounts for the price of gas last summer as now the profits are in every one here seems to think it was a really good business move. Yeah bring on the $10 a gallon oil in that case,its just good business.
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Threads like this amaze me.
jambo101, didn't *you* start the thread with a statement? Why are you being so obtuse in backing up why you made that statement? All we are getting from you is re-directs.
You said the XOM's profits are "obscene", right? What does that have to do with what some posters may have posted in the past? Does that alter the current reality?
I take it you are not going to answer the questions I posed.
-ERD50
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