chart showing breakout imminent, page-22

hi cafa,
my feeling is that a lot of the renewed interest in Sirtex is exchange rate related.Surely some of the larger market players with their extensive research capabilities would have done the sums.

Almost impossible for a private investor to get an accurate idea of just how much effect the drop from around $1.06 to the present level around 95c would have particularly due to the natural currency hedges of having manufacturing and sales operations in the US and Europe.This of course does reduce the effect of the drop in the AUD
Also of course we have no idea of the present company policy regarding hedging.

Long term average for the AUD since it floated is around 75c US and it really would not be a huge surprise to see it down to the 80c level. With the much stronger sales now compared to when the AUD was last in the 80c level we could see a strong lift in profitability.

Of course the downside side of a much weaker AUD would be that any interested overseas party would have to spend much less of their own currency in the event of a takeover attempt.

July results will be interesting to say the least.

regards, EB