The value of a stock in a packaged chicken company goes down because oil prices are up, why?
Saturday, April 11th, 2009
Swampy asked:
Transportation costs are a factor, but there’s more to it… What more to it could there be? I suggested intimidated investors, but that’s not it. What reasons could you come up with for this model?
Transportation costs are a factor, but there’s more to it… What more to it could there be? I suggested intimidated investors, but that’s not it. What reasons could you come up with for this model?
P.S. The inverse is also true, the Chicken company’s stock goes up as oil prices go down
This is a hypothetical situation.
Charlene
