Originally posted by Mich the Tester
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Daily Doom
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Insanity: repeating the same actions, but expecting different results.
threadeds website, and here's my blog. -
Well hang on....
So if you own shares in Shell (BP being a bad example), for their shares to drop by 90%, would imply that demand drops by 90% or that the price of oil does.
I'm not sure I buy that!I'm alright JackComment
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Originally posted by BlasterBates View PostWell hang on....
So if you own shares in Shell (BP being a bad example), for their shares to drop by 90%, would imply that demand drops by 90% or that the price of oil does.
I'm not sure I buy that!Insanity: repeating the same actions, but expecting different results.
threadeds website, and here's my blog.Comment
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Originally posted by threaded View PostHe's not saying demand for oil will drop, he's saying demand for the shares will drop.
Why does he think this won't happen?
OK, I'll read the article now in case it is obvious.Comment
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Originally posted by Gonzo View PostCompanies like Shell generate a lot of cash which is returned to the shareholders. There has to be a point where the share price goes so low that the yield becomes irresistible and the demand returns.
Why does he think this won't happen?
OK, I'll read the article now in case it is obvious.
When these shares stop rising in value, then the investors will want to see their dividends rise.
Now, if the companies don't have any cash to give them, there'll be a disparity.
Much like the South Seas Bubble, he gives as an example.Insanity: repeating the same actions, but expecting different results.
threadeds website, and here's my blog.Comment
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Originally posted by The_Equalizer View PostThere would be complete social melt down long before it dropped 90% from current levels.Insanity: repeating the same actions, but expecting different results.
threadeds website, and here's my blog.Comment
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Originally posted by threaded View PostMany companies have a low or even zero yield, insisting that the increasing value of their shares is sufficient return to their inverstors. M$ is a prime example.
When these shares stop rising in value, then the investors will want to see their dividends rise.
Now, if the companies don't have any cash to give them, there'll be a disparity.
Much like the South Seas Bubble, he gives as an example.I'm alright JackComment
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Originally posted by BlasterBates View PostYes but not companies like Shell, all big co's pay good divi's at the moment div yields around 2%, that's what I get on average in my portfolio, so can't see dividend yields going up to 20%, which implies then that their profit will have drop by 90%.
Alternatively, if share prices drop 90% and dividends stay the same, yield increases to 20% although profit and dividends remain exactly the same.While you're waiting, read the free novel we sent you. It's a Spanish story about a guy named 'Manual.'Comment
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Originally posted by BlasterBates View PostYes but not companies like Shell, all big co's pay good divi's at the moment div yields around 2%, that's what I get on average in my portfolio, so can't see dividend yields going up to 20%, which implies then that their profit will have drop by 90%.
When inflation proper kicks in to make up for all the money they've given the banks, then the yield will have to go up to compensate, and if a company can't pay out then it's game over.Insanity: repeating the same actions, but expecting different results.
threadeds website, and here's my blog.Comment
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