Ann: CER equity hedge update , page-13

Hedges will definately be closed off if the Dollar keeps climbing.

But remember that there is more variables then just the value of the aussie dollar. Time and interest rate margins may also be variable. << This is me guessing as I only just read this on someone elses post ages ago.

People are a little frightened of the restructure thinking thats it's an imminent dilution.

JPMorgan is very pro CER. However they were dissapointed that a restructure is not happening earlier. This is a little similiar to the way i think.

What people are forgetting is that Cer has another 21c in NTA that is not be represented in our official NTA price of 33c. This is superllc.

In other words, If some big capital transaction occurred and money was pumped in from investors,cnp and cer. Dilution occurs but CERs real NTA of around 54c gets diluted to 25, 30c or even 40c With better gearing and a dividend policy.

Thats not to say that time is still the better option for the people holding out for the bigger win.

On rising valuations, the higly geared ones are the ones that hit the jackpot and vice versa in the bad times.