Hi there.
Just want to confirm that if I purchased shares at 1630 on the 19th septemeber and then sold them first thing on the 20th......I would be paid out for the 5 cent dividend.
Cheers
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Hi there.
Just want to confirm that if I purchased shares at 1630 on the 19th septemeber and then sold them first thing on the 20th......I would be paid out for the 5 cent dividend.
Cheers
Hi Nita,
Usually companies dont hedge in one go, unless its part of their financing arrangements.
Blocks are most common...ie rolling 20% per annum. FPH hedged at 45cent USD...it enabled them amazing growth.
Financial instruments can be very useful, and its a shame that so many people never take advantage of them. The biggest drag on NZO is the oil price risk...since NZD is a commodity currency we have a partial hedge to falling crude anyway. But why stop there? If oil continues its trend downwards, and you hedge (partially) you win both ways. Right?
Risk reward? By hedging, you take less risk and you gain greater reward. If, say, all production was hedged (hypothetically) then NZO should theoretically increase towards its brokers estimates (probably higher given oil risk will be taken out). The only thing left is the operational risk...
I dont understand your concept with cap ex as you wouldnt hedge for production you dont already anticipate. Ie You would only hedge for such things as tui...therefore only opex matters..we dont see that changing too much in the next year.
I suppose it all depends how risk averse you are, or whether you see opportunity.
thanks Nita.
Last divi didnt the share price go up......??????
i beleive hedging is very useful in some areas. however hedging the oil prices is just like taking insurance.
you make a point that oil continues to down trend and you hedge then you win both ways. well you will in that case but then the opposite would happen if oil rises.
fph is a a different kettle of fish. some exporters have to hedge otherwise they can go broke in no time or make a killing. it helps control your revenue and helps your forward planning. However if you notice, nzo is still getting around $NZ150 pbo. the downward price of oil has been somewhat negated by the fall in the $NZ.
As i mentioned, hedging is just another form of insurance. As we know, insurance is bloody expensive unless you need it. at the moment nzo dont need it
Hi Nita - good point, seems to be leading to a $US100 happy point for everyone, esp. NZO given the $NZ.
The $NZ150 pbo? Not wanting to nit(a) pick but it is out quite a bit. $US110 for Tapis at 0.655 = $NZ167 - significantly more - ballpark figues but X by barrels expected...