RE:RE:Where is myhoneypot Thanks Honeypot..was reading the hedging right....
I have to agree with you, i dont understnad the hedging strategy...you hedge when you have a large capital project where you need certain return or a loan payment that you cant miss and you want to protect the return or payment...but you never hedge operating returns..you let that part ride as hedging is not cheap.,,,
to me, given the low debt threshold and miniscle amount of dividends, there is no need for such an extensive hedging strategy...it kills future share appreciation by locking in returns...at that point investors lose interest as upside has been kneecapped
if they want to hedge 10 ro 20% of production to protect some capital project returns, fine..but this excess hedging is just nonsense and kills our upside..
theres being responsbile with the balance sheet and then theres putting all your moeny into a bank account because its safe...ARC is doing too much of the later and will limit upside unfortunately IMHO