Forum Archive Index - December 2002

[Marilyn Munroe <who.c@res.co.nz>]

This time last year there was some discussion on the forum about Sanfords 
foreign exchange loses caused by their hedging policy.

A copy of the chairmans address at the AGM arrived in the mail together with 
the dividend cheque (Ho Ho Ho Merry Christmas).

The Chairman discusses foreign exchange policy in his address.

He states that an independent review was conducted in the past year resulting 
in some refinements which has resulted in reduced forward cover in JAP yen.

He goes on to state that if the value of the Kiwi $ remained the same for the 
period equal to longest forward fx contract Sanfords would gain $60 million.

Assuming for a moment that the KIwi $ will not move and the $60 million is 
gained, would this have made up for previous losses? I would love to hear 
from any number crunchers what they tally.

Another point for discussion is should Sanfords close out their fx contracts 
straight away and book a profit?

Boop-boop-de-do Marilyn


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