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/biz/ - Business & Finance

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897977 No.897977 [Reply] [Original]

So I'm a total newbie at trading, and even economics for that matter.

I've seen the gas prices drop, and I've been seeing posts like "this will destroy some smaller oil companies".

So I was thinking, if the smaller businesses go bankrupt in all this, the bigger ones that will survive will be able to become even bigger afterwards.

Is that possible? And if so, doesn't that just make this the perfect time to buy stocks in something like Royal Dutch Shell, or BP?

Or is that not how this game works?
Just a random thought I had.

>> No.897978

>>897977
EVERYBODY IS FUCKED M8

>> No.897981

Heat Chip is the only safe, guaranteed investment right now.

>> No.897983

>>897981
the trade may be getting overheated :^)

>> No.897986

Everyone's V-COGS are based on the cost of oil.

Oil prices can be almost anywhere without a significant amount of folks going out of business.

Now, this all hinges on the fact that companies and more importantly, countries, are OK with negative earnings but positive cash on their oil sales. A company can only survive so long that way. Countries never have to stop because of taxes and help from allies.