Pelosi: Buy Pharma, Buy Big Oil, Boo-Yah!!
My main reaction to these ostensibly shocking statistics is "so what?" But for shits and giggles, let's check her math...
Pelosi Assertion #1: In 100 hours, the top five oil companies will take in $4.3 billion in profits.
Let's see. ExxonMobil made $36.13 billion in net income last year. That's roughly $99 million per day or $412.4 million in 100 hours. Exxon is the largest oil company, so the top 5 oil companies can't be larger than 5 Exxons. 5 Exxons would make $2.06 billion in 100 hours, not $4.3 billion. Only off by 50%.
Pelosi Assertion #2: In 100 hours, the top 10 pharmaceutical companies will gain $2.6 billion in profits.
OK. Pfizer made $8.09 billion in 2005 or $22.2 million per day, thus $92.3 million in a hundred hours. 10 Pfizers would make $923 million and since the top 10 pharmaceutical companies can't be larger than 10 Pfizers, she's not even close.
Granted these are 2005 numbers. 2006 numbers could be better naturally. Given the magnitude of the disparity, if these are the run rates that Pelosi is assuming I can only conclude that Pelosi is forecasting stunning earnings growth and blowout corporate profits well beyond "street expectations." She's as bullish a forecaster as I've seen! Buy stocks! Go Nancy!
Pelosi Assertion #1: In 100 hours, the top five oil companies will take in $4.3 billion in profits.
Let's see. ExxonMobil made $36.13 billion in net income last year. That's roughly $99 million per day or $412.4 million in 100 hours. Exxon is the largest oil company, so the top 5 oil companies can't be larger than 5 Exxons. 5 Exxons would make $2.06 billion in 100 hours, not $4.3 billion. Only off by 50%.
Pelosi Assertion #2: In 100 hours, the top 10 pharmaceutical companies will gain $2.6 billion in profits.
OK. Pfizer made $8.09 billion in 2005 or $22.2 million per day, thus $92.3 million in a hundred hours. 10 Pfizers would make $923 million and since the top 10 pharmaceutical companies can't be larger than 10 Pfizers, she's not even close.
Granted these are 2005 numbers. 2006 numbers could be better naturally. Given the magnitude of the disparity, if these are the run rates that Pelosi is assuming I can only conclude that Pelosi is forecasting stunning earnings growth and blowout corporate profits well beyond "street expectations." She's as bullish a forecaster as I've seen! Buy stocks! Go Nancy!
posted by Donny Baseball at 5:31 PM
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