let's get back to fundamentals, page-16

Pichmac37

I have mentioned A$ hedging in the past but I am not in favour of it personally in this case.

My reasoning is that this was what nailed them in the first place they entered into it at the A$highs and then got no benefit of the falls despite the double impact of a lower volumes.

My understanding of fundamentals in this stock is that when Oz is doing well we are resources export driven and the A$ is high. We are then also pumping out good volumes needed of all of PSH's products. When the A$ is low than our volumes are lower but the A$'s we receive are higher as our product is priced in US$.

The last crises we covered at the high's and then the volumes declined and we took a very big bath and really got the shareholders offside. Thus bad decisions amplify the problem. I prefer that they left it as they have a natural hedging offset in their business a number of others would kill for something like that. If you play it you either amplify your advantage or you amplify the the disadvantage I dont like those types of bets.

Our CFO is ex Adelaide bank and I would have thought he would have covered this a bit better but that was not the case.

Your articles were very interesting and I concur I think some Insto's are taking their money off the table here.

Only hold a few to be on register