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#20,201
#20,201
InVOLuntary said:
Problem is his margins are much higher on fuel in the system. He's making a lot more money when it spikes.
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Yeah, for a brief amount of time. Once he exhausts that supply, he's got to buy it at a much higher price. And then when prices decline, he's selling gas for a period of time potentially for less than what he paid for it, especially if the drop is sudden. The gas stations themselves aren't really the ones that benefit from this; it's the oil producers and to a lesser extent, the refiners (although to a large degree those are one and the same). It costs Chevron about $50 to get a barrel of oil out of the ground...they're able to sell that same barrel for $100 while their costs remain the same.

I mean, what's so surprising or eye rolling about a company behaving in a way that protects their margins...lol
 
#20,202
#20,202
05_never_again said:
Yeah, for a brief amount of time. Once he exhausts that supply, he's got to buy it at a much higher price. And then when prices decline, he's selling gas for a period of time potentially for less than what he paid for it, especially if the drop is sudden. The gas stations themselves aren't really the ones that benefit from this; it's the oil producers and to a lesser extent, the refiners (although to a large degree those are one and the same). It costs Chevron about $50 to get a barrel of oil out of the ground...they're able to sell that same barrel for $100 while their costs remain the same.

I mean, what's so surprising or eye rolling about a company behaving in a way that protects their margins...lol
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Because they are not protecting their margins. They are making more money on both ends. The guy flat told me he sells it a higher margin when it goes up, before he's experience any price hike. He then holds the price until his lower priced fuel gets in the system and maybe a little longer. He's making much more than he would have had the price not gone up. I'm really puzzled how this is hard for you, lol.
 
#20,203
#20,203
InVOLuntary said:
Because they are not protecting their margins. They are making more money on both ends. The guy flat told me he sells it a higher margin when it goes up, before he's experience any price hike. He then holds the price until his lower priced fuel gets in the system and maybe a little longer. He's making much more than he would have had the price not gone up. I'm really puzzled how this is hard for you, lol.
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Yeah, typical model is to add whatever markup is needed to the higher of replacement cost or actual cost. The volatility either way plus high margin in store purchases is where profits are made...

To be fair, the in-store high margin purchases decrease when gas goes up...

Obviously CVX is killing it right now
 
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#20,206
#20,206
Read that the rate of delinquent auto loans surged to highest rate in 32 years. $200B of inventory sitting on dealer lots. Looking for zero % to 1.99% dealer financing to show up any day now.
 
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#20,208
#20,208
Vol737 said:
Read that the rate of delinquent auto loans surged to highest rate in 32 years. $200B of inventory sitting on dealer lots. Looking for zero % to 1.99% dealer financing to show up any day now.
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Wowsie!

Is that a gauge of the economy or some other factor involved?

Don't follow too closely but do know that local real estate is currently dead as a hammer except on low end of market. A combination of high rates with lack of funds to make monthly payments.
 
#20,211
#20,211
Go aeiou said:
Is $200B high. Time to buy? Used/New? I don't need to finance.
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My guess is it’s new and used sitting on lots, but I couldn’t find an average inventory value relative to time on lots. Found another article saying March sales ticked up and inventories had receded slightly down around 2.98 million on new car. I have seen some low rates offered by a few manufacturers advertised. Sedans seem to be selling better, luxury SUV (think big Lexus, et al) are sitting much longer. Makes sense with some of these that cost $75K to over $100K and gas prices significantly elevated.
 
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#20,214
#20,214
Milehigh_Vol said:
So I have made a ton off of planet labs, should I double my position if possible?
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Nice industry right now, but shares have maybe gotten ahead of a good valuation. Not turning a profit so it’s kind of risky. Don’t go much higher than 10% of your total investment capital.

You could sell at the money or in the money put options to get shares a bit cheaper or make a profit if shares continue to go up.
 
#20,216
#20,216
Thunder Good-Oil said:
Nice industry right now, but shares have maybe gotten ahead of a good valuation. Not turning a profit so it’s kind of risky. Don’t go much higher than 10% of your total investment capital.

You could sell at the money or in the money put options to get shares a bit cheaper or make a profit if shares continue to go up.
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I've decided to ride it out till the next report. I put in a stop loss that will keep my profits very high. I bought in around 11-12.
 
#20,221
#20,221
Jax_Vol said:
And forgot to share with us :mad:...your trading buds at THE Volnation? :D
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I was spec buying, I thought 11 was the floor and I sold out of Tesla. So I put that money into Planet Labs. I dont like sharing speculative stocks, because I don't want to lose people money. Because I have been wrong plenty on what I thought the floor was... haha
 
#20,223
#20,223
05_never_again said:
Technically the S&P still looks kind of ominous...we're just hanging out underneath the 200 DMA (although it is still rising. IGV looking weak again, like it wants to re-test the February lows.

Having said that, a big move up would be the thing that catches the most people off guard, which is what usually seems to happen.
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I should have just stuck with this sentiment lol
 
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