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    • Thu Jul 3rd 12:49 PM
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      Rating: 0 0
      Commented on:
      Six Profit Plays Amidst Soaring Oil and Zooming Inflation
      I am a freshmen, I think CEO may worth much more than current price for the high oil price.
      simple calculation:
      Last year: turn over 100 Billion/Profit 35 Billion@ Oil price 66USD.
      This year: @Oil average price 120 USD-> Turn over 100*1.1*120/66 = 200 Billion, 10% percent production increased considered.
      If cost increases 20% due to higher PPI, and more tax. then the cost will be (100-35)*1.2 = 78 Billion -> profit will be 122 billion. Let put 22 billion aside for additional CAPEX investment. Then the net profit will be 100 billion, increase 185% than last year. At a reasonable P/E as 12, the price for CEO should be 359 USD. but the Price now is only 170 USD.

      IS there anything wrong in the above calcalation, Please help to identify.
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