Forum Archive Index - December 2001

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

Thanks donkeyboy for that challenge. However I don't really want to get into 
a discussion about managing forex risk - for no other reason that in this 
case it won't prove anything.

What I am concerned about is the apparent lack of accoutability within SAN. 
Yes, plenty of disclosure and explanation but no admission of we stuffed it 
up.

I agree that SAN have performed very well in all other areas and no doubt 
will continue to do so in the future.

It seems a shame that a lot of excellent work done by SAN's workers is  
going down the gurgler because of decesions made in the treasury section of 
SAN. I would be worried about my job if I workded in that dept because there 
seems no end in sight to these exchange losses.

Wouldn't another $42M on the bottom line over the past few years made the 
share price higher than it is today. Without the $27.7M forex losses last 
year earnings per share would have been 29 cents a share higher.

Some would say that on this basis many would now (including professional 
investors) value SAN another $2-$3 higher than it is now.

Whwn I said fighting history I meant SANs own forex performance and their 
insistence in continuing to bet against a historical long downtrend in the 
NZ dollar.

Over recent years SAN have got it wrong at some cost -  which cannot be 
justified as a cost that creates certainity.

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