There was nothing wrong with their hedging strategy. Hedging locks in surety of revenue, and most large corps hedge their prices as well as the currency. Otherwise you are gambling.
Its easy to say "oh everyone knows copper is going up". Last June, USD was at .86 and trending down, no-one could see it being on parity 6 months later. Everyone that locked in forward fx revenue of .86 now looks like a genius.
HGO management have problems, but hedging strategy is not one of them. Z
HGO Price at posting:
26.0¢ Sentiment: None Disclosure: Not Held
