huge sellers, page-28

Just on the issue of LHG being an expensive stock based on it PE.

What profit results are being used to establish the PE?

Unless I am mistaken LHG's last profit result was a shocker due mainly to the company bringing to account unrealised losses in relation to their hedging positions something they were not required to do and something most companies do not do and prefer to hided these positions on the balance sheet until they are realised.

What this means is that most of the negative efffect of LHG's hedging has already been bought to account which will greatly improve future profit results (assuming the POG remains up) and that using the PE ratio as a means of valuing the company is next to usless.