RE:RE:Potential hedging losses in Q2firecracker74 wrote: As of June 30 TV will have about 135M pounds still hedged. That would result in a mark to market NON CASH charge of $13.5M. Keep in mind that this would be partially offset by the mark to market gain on the unsettled inventory and repricing gains during quarter 2. With $1.37 zinc you would probably be looking at a net charge of about $6-$8M depending on how much unsettled inventory is on hand as of March 31. This is a non cash charge. The actual cash loss for quarter 2 will likely be about $2-$3M. If zinc ends at $1.37 the hedge charge will not be a serious issue as profits before the charge should be north of $30M.
So basically ALF is crying over 2-3m despite the fact that the hedging saved the company when times were tough....just shows what an idiot or BONEHEAD investor/analyst he is