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Old 11th Jan 2017, 22:07
  #3581 (permalink)  
davidjohnson6
 
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Selling assets at a higher price than you paid for them is a valid way to make money. Most businesses like Stobart tend to find that it's not long term sustainable and that they need to charge people for use of those assets on a regular basis. Furthermore this game only works when there is someone willing to pay a higher price for said asset

Thus an airline might be able to buy aircraft cheaply and sell later at a higher price - eg Ryanair. Long term though they have to find a way of charging people for the use of those assets - ie selling tickets for air transport. In Stobart's case if nobody is willing to pay £100m (or more) for SEN, then Stobart need to find a way to make enough people pay more money to Stobart each year than it costs Stobart to run SEN

Last edited by davidjohnson6; 11th Jan 2017 at 22:20.
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