RE: RE: RE: RE: Number of O/S shareslow volatility for the next two years????????
Canada is relatively in good shape financially. The US is in a mess and has trillions of dollars of debt to issue to finance their spending. Look at the US$/C$ for the last two years. Are you expecting the same range?
2007 C$ started the year at US$.85, spiked at US$1.10 and ended around US$.98 or +15%
2008 C$ started at US$.98 and dropped to a low of US$.77 before ending around US$.84 or -14.2%
2009 C$ started at US$.84, dropped to a low of around US$.77 before rising to end at US$.98 or +16.7%
These are historically huge swings that could easily continue as the world decides whether the US$ deserves to be the reserve currency of the world and whether the commodity boom will continue with Australia and Canada as poster children.
Remember SCG.v gross margins are only 7%. There is no room to gross revs to move up and down 15% a year.
I doubt mgmt of SCG.v is qualified to decide whether US$/C$ exchange rate will remain flat or move violently. Hopefully they will talk with a banker who can help them hedge themselves so that they win either way the exchange rate fluctuates. There is no use moving into the US market if it allows big increases in total revs but loses money for the company because the exchange rate goes the wrong way.