Re: Marxist Fianancial Advice

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

on Royal Dutch

Shleifer, Andrei. 2000. "Are Markets Efficient?" Wall Street Journal (28 December).
  "Royal Dutch and Shell are independently incorporated in the and England,
respectively.  In 1907, they formed an alliance agreeing to merge their interests on
a 60-40 basis while remaining separate and distinct entities.  All their profits,
adjusting for corporate taxes and control rights, are effectively split into these
proportions."
  "If prices are right, the market value of Royal Dutch should always equal 1.5 times
the market value of Shell."
  "In the early 1990s, Royal Dutch traded at a 5% to 7% discount from parity, while
in the late 1990s it traded at up to a 20% premium."



--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu