Re: OT: Stock Contest re bottomsup FRD
The NT 10q out yesterday suggests that FRD will make $1.88 for the qtr. Now sure, everyone knew they were gonna make a ton, I mean they said this qtr would be stronger then last when they made a small fortune.
I played FRD for about seven points. I may get back in, but if so only for a trade. I think the way they report is very funky. While they show huge earnings in recent quarters, and I mean huge... they actually lost money, and they will probably actually lose money this quarter. Thats b/c of their huge hedges which they entered at a far lower cost of the commodity, so they lose a ton as the price goes up. Amazingly, imo, they only detail this in their 10q's not in their press releases. The only way you'd have a clue form their earnings releases is that the book value off the balance sheet doesnt go up. Almost every other company with large hedges I know, at least reports both their earnings with the hedges and without. I suppose as long as the they haven't closed the hedge transaction and the loss is unrealized they dont have to detail it.. but still, they should imo.