CS ought to take some cash and buy copperThe company ought to buy in some of their hedges on weakness in the commodity price..my opinion.
Companies with these losses do not help investors understand the situation. Multiple quarters of hedges went into the red and they have to take that as a hit against this quarter's earnings. How do they account for any portion of a hedge that they delivered against...???
What happens to earnings if copper goes straight line from here to the end of the hedges' life...Would we see any more losses due to hedges?? Is the revenue reported actual sales of copper less the loss on the hedges for the quarter.?
These questions probably refect that I don't understand what these hedges' impact on earnings really are, and I don't suspect I'm too far off the level of confusion held by many.
HOW MUCH MONEY DID THE COMPANY MAKE - less provisions for set asides of one type or another including losses on hedges in this quarter relative to copper delivered against any hedges???
Best I can tell the company is selling at 4-5 times the most recent quarter's "operating earnings" times four...Unless Copper moves significantly through $4 and looks likely to stay there, $3.60-$3.75 looks like a good price to sell this stock for...Wishing I had.
Rather disappointed....