emp, page-14

re: emperors hedging ... for irj Dub,

I wasn't offering advice. It's your money.

The difference seems to be over the importance of hedging or not hedging. SBM probably has other problems that somewhat cloud the issue but SBM was raised, by me anyway, as an illustration of a company that seems to have a problem with it's operation that makes it marginally profitable at the best ( POG at the time).

Now of course it seems SBM hedged horrifically say compared with AOR (AOR - AUD 590 was it?) but even if it's production had been unhedged it's costs were high enough to still make it a marginal producer.

In a case like this I would have no hesitation in giving this stock a miss and buying into a properly hedged stock that is economically more viable. The best of all worlds would be if that better stock was not hedged.

lrj