A state-owned company is now worth $1 trillion. Still think socialism has no future?

Question

http://biz.yahoo.com/ap/071105/china_petrochina_ipo.html

Answer 1

Wow,a state owned company dealing in one of the most precious commodities on Earth,with access to millions of virtual slave laborers that are paid a pittance has the ability to make money. Who knew?

AD

Answer 2

I guess you didn't read the article thru. This was a result of an IPO of 15% of the stock in the company. Prior to the IPO the market cap on the company was 60% less.
What drove the value of the market cap up was capital investment, or private ownship of a 15% stake in the company.
This reason this is so high is because the company has a monopoly in the energy sector in an expanding economy. What pushed the market value of the company up 60% was capitalism, not socialism.

Answer 3

This is expected in a two class system . Just another way for the rich to feed off the poor .
Watch now as the cost of energy begins to rise as company executives demand more money ,and as stock holders demand a solid return .

Nothing good ever comes out of Capitalism that does not cost the poor . Since the poor make up 80% of any population ,it is those people who will pay the wages of the rich who idly shuffle paper work and create forecasts much like a weather man predicts the weather .

The media will begin to report how well the retail industry sales for the holiday season are going soon and like last year when the final reports come out the expected sales will be down .

You have to love the medias role in capital markets .

Answer 4

I can't believe someone is using this to support socialism. The company has 1/4 the earnings of Exxon-Mobile and trades at 55 times earnings.

I remember when Qualcomm was trading at $800.00 a share. It trades at about 1/6 of that price today (factoring in the 4 for 1 stock split). Do you have a point?

Answer 5

Absolutely... lets see where it is in 10 years when the regulation of socialism binds it into nothing.

Answer 6

Socialism must use Capitalist methods or it collapses under it's own weight. Have you seen the gas lines in China? Not exactly the model of efficiency now is it?

Answer 7

The Chinese communists are discovering that socialism is a failure. Why do you think they are slowly adopting capitalism?

There are plenty of people getting fabulously rich in China, Mao must be rolling in his grave.

Answer 8

Yes

Answer 9

Yes.

Then again, it may have a future because of ostriches like you, but it is not a very bright one.

Seriously, take a class in economics, or even history!

Answer 10

you're no longer meant to convey issues like this up, you're basically meant to replica what you pay attention him say. In different words do no longer inspect his strikes and returned room deals, merely have faith his lies.