I don't think HM shareholders made out so well. I was one of them and I lost money because they sold out so cheaply. If they had just held on for a year, they'd have made me a profit. Still, for all I know, they were just a month away from chapter 11. But HM's predicament was largely due to a depressed gold market. One depressed by over-hedging producers. No names please, they know who they are. And as was pointed out by others here, HM hedged a little too, and so was not blameless. But by the end, they were trying hard to close them out. And surely ABX wasn't interested in them for their remaining hedgebook.
In classic robber baron fashion, the big hedgers methodically lowered the price of the product until they drove out or bought up much of the competition. With HM, they won, and I lost. I understand that.
Now their day in the sun is coming to a close, unless they get with the new program (follow the sun?) But do they have the foresight to see the incipient bull market. And if so, do they have enough time to close out their hedges at a reasonable price? |
