RE:RE:RE:RE:RE:RE:Fx HedgingGive me a break here. I was going my memory not a transcript and if the Euro weakens it will have the opposite effect and I did say that if the Euro weakens or strengthens..... and time will tell if this will be a significant headwind or not. I think that Brexit will be a risk. The CIBC analyst felt like it was important or he wouldn't have selected it as one of his questions and I intend to talk to him to Prakash on Monday. It is only my intention is only to have intelligent disussion with others on this board and to look to better understand the share price decline. Investors and institutions do not just sell off a stock by 60% in 2016 and dump it on earnings date to make it fall by 13% because everything is bliss. The chart looks like it is a kimakaze death spiral, and if members on the board want to go on believing that it has everything to do with the MMs and the shorts and nothing to do with the conference call then so be it. I question whether posters ever actually thought to ask why the shorts think they can make money - and lots of it - shorting this stock for the last five months? Or what the share price may know that we don't? That is all I'm trying to figure out here! GLTA!
dudsywow wrote: Health123 wrote: Sunshine and Dudsywow, I agree that we cannot forcast how currency will trade and as a global company this gives us additional risk. Although I can not speak for him, I think that Mr. Landry (the CIBC analyst) was more concerned at Euro / Pound hedging (since AMCo's revs are in pounds but costs are Euros) as this is what would pressure margins. There isn't that much room there for error in contrast to the higher margins available in the N. American market. That was what kind of jumped out at me when Martin asked Kreppner "But if Euro weakens or strengthens against the pound that would put pressure on your margins, right?" Kreppner replied: "That would .... but that's not something that we are currently actively hedging at the moment."
As a global company the additional currency exposure Concordia has may increase or decrease your personal risk depending on how your portfolio is structured and what type of currency risk you want to have. It's not necessarily more risk unless you think having 100% US$ exposure is always optimal. Hopefully you can understand this.
Also, you've very conveniently left out the latter part of Kreppner's comment...."but if the Euro strengthens at the pound you also get your Euro denominated revenue increasing.
So it all washed" You're sneaky.
FYI, anyone can read the full transcript at
https://seekingalpha.com/article/3960885-concordia-healthcares-chehf-mark-thompson-q4-2015-results-earnings-call-transcript?part=single