Forum Archive Index - December 2001

["Viewpoint ." <viewpoint_@hotmail.com>]

Donkeyboy - from your comments you seem pretty au fait with the inner 
workings of what drives the forex activities within Sanford.

As such I doubt whether I will be able to convince you that in my mind they 
stuffed up.

We do seem to agree that Sanford took out contracts at 52 cents back in 2000 
so they could benefit if the dollar went subsequently went above this point. 
As you say that gave them some "certainty" around their cashflows (income).

We also seem to agree that the drop in the dollar resulted in them losing 
the opportunity to book their exports at 40 cents odd. This had an 
unfavourable impact of $27.7M on their bottom line to August 2001. A cost 
that shareholders ultimately pay for.

I still stand by my view that they stuffed up big time and that nobody wants 
to stand up and be accountable.

You also point out that by continuing such a policy Sanford will ( if the 
dollar stays above 42 cents) make a 'poultice' in future reporting periods. 
Wasn't making a 'poultice' the real objective last year?

It must also be a concern to shareholders that by  continuing such a 
strategy is fighting history - both their own performance and the long term 
downtrend of the NZ dollar.

Lets hope that history doesn't win and that Sanford can have the successful 
year that, as you say, opportunity and certainity should bring them.



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