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This is not a rare event though. These 'price gouging' events happen very often. you can certainly count on them happening every few years.
by dangwhy 4y ago
This is not a rare event though. These 'price gouging' events happen very often. you can certainly count on them happening every few years.
- jjk166 4y agoAnd they always have been. The volatility of goods have been factored into the price already. If there is some reason to believe the volatility is going to change in the long term that could affect price, but again a spike like this is not indicative of a long term trend.
- dangwhy 4y ago> CFO Max Bowman attributed the monopolist's good fortune to "significantly higher selling prices" and "our ability to adapt to inflationary market pressures." Cal-Maine's stock is up 47% from a year ago – a record high. From eggspensive thread. I think this is the first egg 'price gouging' event in my lifetime. Its the opposite of 'long term trend' that you say is necessary for stock price bump.
- jjk166 4y agoYou can't simultaneously argue that price gouging events are rare and not rare. Pick one. I was referring to the volatility of oil being factored into the price which is why Exxon Mobile's stock doesn't go up significantly when the price of oil goes up.
- dangwhy 4y ago> You can't simultaneously argue that price gouging events are rare and not rare. Why not though. It can be rare in some industries( eggs) and not rare in others(oil & gas). Why would there a be universal price gouging rule that applies to every industry. > I was referring to the volatility of oil being factored into the price which is why Exxon Mobile's Thats what i am asking you why is not factored into Cal-Maine's stock but factored into Exxon's stock.
- jjk166 4y agoThe first part you wrote is the answer to the second part.