beware of what the future holds, page-3

Hi asf and dcf

post on asx rather than stock in error!

divi looks good on current share price, but high payout and given past earnings trend, and current spot rates, I do not see this as maintainable (indeed it has declined over the years). need to remember this is not an asset company, thus share price will closely reflect its profit and loss fortunes, hence its consistent decline over the years.

The whole point of my post was to draw attention to the FX position. It appears to me they have little hedging versus current foreign revenues. DYOR on both the half year results, comprehensive income statement, and the recent investor presentation. i.e. for the FY12 year they only have USD $6+m cover and euro2.4m cover. I dont know what their annual USD and Euro revenues are, nor what the natural hedging levels are, but this is certainly not a years cover. thus dct may want to reconsider the 18 month coverage of fx.

DYOR and good luck to you. Just remember that if everyone saw stocks the same way there would be no market, and no need for a forum like this!

rgds

Relaxan