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Old 04-03-2012, 04:49 PM   #101
Penforhire
Wizard
Penforhire ought to be getting tired of karma fortunes by now.Penforhire ought to be getting tired of karma fortunes by now.Penforhire ought to be getting tired of karma fortunes by now.Penforhire ought to be getting tired of karma fortunes by now.Penforhire ought to be getting tired of karma fortunes by now.Penforhire ought to be getting tired of karma fortunes by now.Penforhire ought to be getting tired of karma fortunes by now.Penforhire ought to be getting tired of karma fortunes by now.Penforhire ought to be getting tired of karma fortunes by now.Penforhire ought to be getting tired of karma fortunes by now.Penforhire ought to be getting tired of karma fortunes by now.
 
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What is obscene profit? Seems like you need to read corporate financial reports if you really want to make that judgement. If they only sell ten of something their margin on those sales needs to be much higher than if they sell 1,000 of them.

And suppose you do read their financial reports. How much pretax profit is reasonable to you? 5% of sales? 15% of sales? That target changes depending on what else you can do with your money. When CD's pay 2% or less then 5% might just limp by. But in the high-interest heydays of the past you had to show 15% or more. Otherwise investors might as well have put their money somewhere else.

The target changes again depending on how much reinvestment is required in your business. Intel has to cough up billions these days to create a new fab. If they don't they will be irrelevant in a couple of years. That cash has to come from profits.

The alternative is to suggest socialism. Let the government pay for it. Maybe. Definitely for some things.
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