Firstly I would like to congradulate long term holders for the sp recovery.
What I'm really finding hard to understand though is the amount of people cheering for a higher aud yet they clearly have no real idea of the implications.The rising dollar may provide short and possibly long term value to the balance sheet depending on which way it goes after hedges are closed out.Personally I think the dollar will contine to rise and under this senario it would be better to be over hedged and in the money due to the reduction of remaining equity cer has in the US.Of coarse just my own thoughts but you have to wonder why cnp was so willing to close out the hedges just as they are about to become a liability to their own balance sheet.Common sense would suggest that cnp would have covered these hedges to cer with their own hedging to a 3rd party so who is going to reap the real reward for closing out hedges?
cheers k8sy
CER Price at posting:
20.5¢ Sentiment: None Disclosure: Not Held
