Originally Posted by
digger
But those puts are good - it just means PPP is guaranteed at least $50 - in the event the price of oil tumbles. Unicorn quote.
Unicorn you have highlighted is exact crasy thinking that i find so adhorent about hedging.What in this world can possibly be GOOD about selling off the best part of your future income just to guarantee that oil would not fall below US 50 ???? At the time it was taken out world oil prices and trends made that chance near nil so the guarantee was always useless except to the hedging company that made millions at PPP's expence.
At the end of the day PPP has not moved forward during this time as the cream and most of the milk as well have been lost to hedging
You have also highlighted my point about acquisitions.If we how go forward on some growth cultural mith that you must always move forward,we could easily screw and be back under this necessary evil you spoke about where we HAVE to do it as a further bank requirement,and be subjected to more rubbish about how GOOD it is that we put ourselves into a position where we are going to lose.
PPP has lost heavilly on this hedging as has NZO and unless you are secertly employed by the hedging companies you will be part of the losing group if we allow this to happen again.I remember only to well some few AGM's ago there was a move to sell all our oil at 40
It is crasy thinking unless your part of the hedging company,and if you are it represents the best investment this side of the black stump.