SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Dell Technologies Inc.
DELL 133.35+0.1%Nov 28 9:30 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jim Patterson who wrote (25684)12/18/1997 11:02:00 PM
From: hpeace  Read Replies (1) of 176387
 
Jim, dell was using derivtives in their purest form on the period we are talking about....
there is absolutley nothing worng with hedging currency in the period AFTER you sell it and when you collect. This is the exposure.
You sold large amt. to corp and the rate was 100 to $.
Now if they send you 100 yen 60 days later and it's now worth 120 to 1$. then unless you hedged..you just lost 20% of your profit...
that's it , you lost everything on that one...
So, what do you mean they shouldn't hedge.
To do this you need to actually deploy the instrument before you make the sale but to the plan ....
Not overly optimistic or under plan.
This is basically what they do now...
I don't think anyone would describe dells hedging as risky now...
If you have printed facts on this..i would like to see them.
they are in their edgar filings on any analsyt reports..
If you are refering to their losses on hedging or small gains...
this is what should happen if it's donw correctly...
now if they were making 10 mm or losig 10mm. then i would agree with you...
but this isn't the case.
i posted a complete summary of their gains and losses going back to 1992...except for their dirivitives that were wild in 92 or so..
they are okay now....

But, I'll look at any FACT you post... but it's time for facts not just opinions...he just say " I think and don't have any facts"
That's a good acceptable answer.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext