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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Cactus Jack who wrote (185193)8/1/2002 8:42:47 AM
From: yard_man  Read Replies (1) of 436258
 
they may have been forced into that by the banks -- not fun, but many commdity producers for which energy is a large cost, enter into such agreements to limit their risk and forgo a slice of profits -- it simply gets them a lower price on the downside and a cap on the fixed part of the bill. For the electricity supplier it gives some participation in the upside of the biz

We have a similar agreement with an Aluminum smelter ... a loser for us at current prices.

Using the term derivative is just trying to blow the thing out of proportion and let somebody purchase the shares on the cheap
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