Quote:
Originally Posted by xelasnave
If they make so little on each litre and the margin is so narrow one must also wonder why their share price is so strong...
alex
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Alex, have you seen Caltex's share price lately? It is down a lot further than the rest of the market.
Caltex uses an unusual metric for calculating company profit, replacement cost of sales operating profit (RCOP), and it now compensates for exchange rate fluctuations in these calculations. Caltex has been an "avoid" for six months.
BTW, the increased demand for diesel is coming from our miners, who are still experiencing a boom.
Cheers,
Brian.