shipping contracts update, page-21

Interesting to hear people's judgement in 20/20 hindsight. If the market had continued to be as strong as it was 3-4 months ago, then Twiggy would have been a hero for securing the shipping he needs to deliver the volumes he was expecting to sell.

This is no different to the case of MGX who has been caned for hedging its forex transactions at $0.88 at around the same time - at that time it was a prudent decision.

As with many things in life its all about timing and timing has a habit of making us look like a mug on many occasions after the fact. Just ask all the poeple who invested in equities/commodities/etc at the top of the market - back then it seemed like a good idea I'm sure.

From another perspective, whether FMG takes the hit on these contracts or not, relative to its market cap a settlement of maybe $135M on contracts valued at $300M (which seems like not a bad dicount by the way) is much smaller than the hits that the banks are taking on bad debts, etc.

Everyone is getting caught in one way or another in this turbulent market, its impossible to steer a course through the current economic situation without making any errors at all...