Aguytrying wrote:thisis not where i get confused between being an investor and a customer.
the margins for lpg are too high. id be happy if they came down.
The problem is that whereas competition should be the primary driver in lower prices... controls will reduce the incentive to build new infranstructure.
KK borrows at 18-25% [based on the CP rates as well as bank financing] then has to make a reasonable margin to cover forex risks, labor, etc before making a profit... Assuming low stock turnaround [coz LPG is shipped in] means a GPM of 50% is required...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett