RE:Cdn $$$Bullphighter wrote: Any thought on where our dollar is heading, as CXR increses it's share value? We could have a 0.70 dollar !! Other countries will take notice if Justin starts printing money. I recall paying $1.56 for 100 USD once before. If the valuations and revenues are always based on USD, our stock price will be even higher yet. A few % anyways. Just a little more gravey. The stock price is always in USD, then converted to CND? Is this correct? If our dollar dropped, in theory the share price should go up in CND? Any insight would be appreciated
A weakening domestic currency will benefit those companies that earn revenue outside of Canada, simply because the translation of earnings into CAD results in a higher number. Also, you can experience FX gains if you hold assets (e.g. A/R) denominated in a foreign currency. Conversely, purchases made and liabilities held on the B/S and denominated in a foreign currency have the opposite effect.
CXR will now be impacted by the relative performance of many different currencies; however, I believe that CXR has natural hedges in place to mitigate the FX risk.