RE:RE:RE:Hedging lossesVII Gen was forced by the bank to enter those ridiculous hedges when Covid tanked the market in 2020 . VII dropped below $1.50 , shares held as loan collateral were sold in a panic by that bank and it all spelled the end of VII . ARC has the benefit of time and price to repair the damage inflicted by those "woke" bankers . Does anyone else find it strange that the better ARX does , the more agitated and obnoxious HP gets ? That tells me all I need to know , ignore MHP
Quintessential1 wrote: Perhaps the future hedging was put in place to guarantee the refinancing of the VII G debt 3 years out and has saved more money than they have cost or at least mtigated those losses.
I am going to hold my shares and let management do what they do as long as my total return looks as good as it does.
The only control you can excercise is buy and hold or sell and short. Your share votes about what happens with management is lost in a sea of institutional investor votes.
You know this and new investors reading this should know that all you are trying to do here is shake the tree so that you can catch the falling fruit.
GLTA Longs
MyHoneyPot wrote: Sorry the context of these hedges is the product of management utter stupidity, and inability to work within a hedging framework, or defined strategy.
If you had a hedging methodology, or follow a hedging strategy you would never have 47 dollar hedges 3 years into the future, for so much of your production.
You woud layer hedges on over time in a methodocial manner, to protect the downside and participate in the upside of commodity cycles.
This was not done at ARX, their hedges represent hedging malpractice. Junior High Approach
IMHO