Posted by
Vonnie on Thursday, August 07, 2008 3:50:08 PM
Congress has repeated continously that Exxon buying most of its stock back in order to make more profits. You know, evil profits.
Any money movement in any corporation is required to be reported into statements that have to be filed to the SEC.
I checked these statements. Exxon stock purchases are inline with previous history.
Further, I checked insiders. The government requires top management and their family to file these types of buys and sells. I checked the insider reports with no alarming purchases or sells.
Their stocks are purchased regularly to compensate employees. They do not time these to insure the lowest possible stock price. They are purchased every quarter, like at the end of the quarter. Last quarter was nine million shares, but this is only 1.7% of its total shares.
Using stats from this myth, one billion shares were bought in each of the last three years, for a total three billion shares:
Exxon has a total outstanding of 5.19 shares.
At 78, this cost 234 bln.
Think how they were able to hide this from public scrutiny:
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The total revenue in the last three years is 1.15 trl with cost of revenue of 659 bln, leaving 491 bln.
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Applying taxes (81 bln), research (258 bln), other (36 bln), leaves the net income is 116 bln for the last three years.
- If they could buy this without reporting, they would have no profit and 118 bln debt, resulting in no liquity. How could they pay their employees or pay for drilling sites that cost $350k per day?
- They would have to sell something worth 118 bln to get out of debt.
- They would have sell even more or make loans to meet operations.
- The next statement is this why they sold their service stations.
The total number of Exxon service stations is 12,000. Exxon owns 2,220 of these. The remaining 9,780 service stations are owned currently by families and other non-related companies. Exxon plans to sell out of their interest because they do not receive enough profit from them. The announcement has not disclosed the sell amount, but I will try to estimate. Say on the average a service station costs 10 million. This is 22 billion. See announcement is
http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/061308dnbusexxonstatons.263f5e44.html
To recap, they would have to report zero profit, 118 bln debt, loan against future service stations selling of 22 bln, and break the law by not reporting the large stock purchase.
People, no matter what their status, can write anything.
As they say, don't believe your lying eyes. Even though we see the logic, they want us to believe what someone writes.