Tuesday, August 5, 2008

Things I learned on Myspace...

Below is a bulletin post from a guy I know. I found it very interesting...

Will gas prices go up or down?
I'm going to drop some knowledge on you, then let you extrapolate an answer to the question. (Below the info are three links to sources, but I bet you can find more.)

Facts: Businesses act exclusively on the interests of the owners, whether privately owned or publicly. (If the owners are a philanthropic sort this may seem not to be the case, but every company has only it's shareholders in mind.)

Exxon-Mobile reported the highest profits of any company in US history during the second quarter of '08. They made $11.68 billion. Profit. In three months. This comes to about $1,485.55 per second.

This level of profit was smaller than was predicted for the second quarter of '08, and not meeting your predicted profit=FAIL in the world of stockholders, so the stock price dropped upon the announcement of the quarter's profits.

To sum up: Exxon-Mobil's record setting profit of almost $1500 per second - the highest profit in the history of the US - was not good enough to meet the expectations of the owners of the company, who began selling their shares in the company in response. So Exxon-Mobil needs to make more profits. And other oil/gas companies need to do so as well if they are going to compete where it matters: on wall street.

So...Are gas prices going to go down, go up, or stay where they are?

links:http://www. nytimes. com/2008/02/01/business/01cnd-exxon. html?_r=1&oref=slogin

http://www. washingtontimes. com/news/2008/aug/01/exxon-mobil-profits-take-a-hit/

http://money. cnn. com/2008/07/31/news/companies/exxon_profits/index. htm

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