Posted by UlarSawa > 2022-09-04 10:49 | Report Abuse

"Hedging should aid companies in reducing the impact of prices' fluctuation on their main business," Kenny Ng, securities strategist at Hong Kong-based China Everbright Securities International, told Commodity Insights in an April 11 interview.

Posted by UlarSawa > 2022-09-04 10:49 | Report Abuse

Hedging against volatility

Commodity prices have been surging in the past couple of years. The S&P GSCI index, which tracks 24 commodities, jumped more than 260% from a low of 228.24 on April 21, 2020 to 822.3 on March 8, the highest level since 2008, and has since been in flux.

With some metals prices hitting historical highs, miners concerned that metals prices will fall sharply this year might take a short position to prevent a potential shock to their earnings, Ng said.

However, if they have built a large hedging position and those predictions go wrong, the losses will hurt their profits, Ng said.

"For most of the Chinese miners, the main purpose of hedging is to prevent falling raw ore prices [to cause losses]," Xia Yingying, a metal analyst at Nanhua Futures Co., told Commodity Insights April 14.

Posted by UlarSawa > 2022-09-04 10:50 | Report Abuse

In practice, those companies usually sell futures contracts that cover the same amount of ore to be sold in the spot market, with a delivery date in the futures market that is the same as, or close to, the trading date in the spot market. Then the miners can close out the futures contract position when they actually sell the ore in the spot market and lock in trading prices, the Hangzhou-based analyst said. Some miners use options, which have more complex structures and provide more flexibility, Xia added.

Integrated metals producers are also looking to hedge against rising raw material prices.

"[The smelting segment] must use derivative instruments to lock in processing profits and reduce the volatility of the operation," Wu Honghui, financial controller of Zijin Mining Group Co. Ltd. told investors on a March 21 call.

Posted by JWLL1668 > 2022-09-04 10:51 | Report Abuse

SSLee, Probability. Appreciate your hard work on the input to guess the Qr report. You all had done a great and awesome job. Patient is a must but not every time you will get what you expected especially in Bursa. I see many experienced investors finding its harder to make super good ROI after the Glove theme play. For OnG, I see the sentiment is getting weaker. No doubt the next qr probably will be better as what you all guessing and expected. I’m decided to leave the boat when I’m still profit after two rounds of fighting! Hope all the best to those still holding the ticket! Will be back if the sentiment is re-emerge again???

Posted by Sslee > 2022-09-04 10:52 | Report Abuse

If you had read thro" all my comments directed at stockraider in Netx and Insas-wb. My intention between lines and after the sacasm is to advice stockraider not to gamble his hard earned money with Netx RI and Insas-wb.

Posted by UlarSawa > 2022-09-04 10:55 |

Post removed.Why?

Posted by UlarSawa > 2022-09-04 10:56 | Report Abuse

Now Raider advised you not to gamble HY. Haiyoh. Correct?

Posted by UlarSawa > 2022-09-04 10:57 | Report Abuse

So how. Still want to gamble kah. You advised your friend and your friend advised you back. So must accept the goodwill lah. Haiyoh. Correct?

Posted by Mikecyc > 2022-09-04 10:58 |

Post removed.Why?

Posted by Sslee > 2022-09-04 10:58 | Report Abuse

By the way stockraider said he make 2 myvi from his bet with Netx RI and make a last minute escape with his 0.5 sen,1 million Insas-wb before insas-wb expired as toilet paper.

Posted by UlarSawa > 2022-09-04 10:59 |

Post removed.Why?

Posted by UlarSawa > 2022-09-04 11:00 |

Post removed.Why?

Posted by Mikecyc > 2022-09-04 11:03 |

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Posted by UlarSawa > 2022-09-04 11:03 | Report Abuse

Sometime judi superpenny stock also can make money also leh. It is a matter of timing the goreng happen you exited at correct time. Then you win lah. Of course you win someone else lose lah. Part of the casino games in bursabolehland lah. Haiyoh. Correct?

Posted by JWLL1668 > 2022-09-04 11:05 | Report Abuse

Hahaha, many here still spamming nonstop. Good luck guys!

Posted by UlarSawa > 2022-09-04 11:05 |

Post removed.Why?

Posted by Sslee > 2022-09-04 11:06 | Report Abuse

I just have a small position in HRC.
I invested more in Petronm taking advantage of refining margin had increase from past many years of Poor single digit to USD 10+ by jan 2022 , peak at USD 40+ and now undergo some correction. I still have my faith that moving forward for next few years the refining margin can maintain at double digit.

Posted by Mikecyc > 2022-09-04 11:06 |

Post removed.Why?

Posted by UlarSawa > 2022-09-04 11:07 | Report Abuse

Yalor. Some spamming some sharing. So talk kok. Some defend. Some attack. Some got nothing to do like you also post mah. Haiyoh. Correct?


JWLL1668

Hahaha, many here still spamming nonstop. Good luck guys!

37 seconds ago

Posted by Jerichomy > 2022-09-04 11:08 |

Post removed.Why?

Posted by UlarSawa > 2022-09-04 11:13 | Report Abuse

Can lah. Judi 1000 share is not that scary lah. Lose also not much lah. Why cannot judi. Haiyoh. Correct?


qqq3333

1000 shares in bursa surely can better bets whether investing or speculating

3 minutes ago

Posted by UlarSawa > 2022-09-04 11:15 |

Post removed.Why?

Posted by i3lurker > 2022-09-04 11:16 | Report Abuse

A Good Samaritan [not me] donated the money to Raider just to help out
I believe it will NOT happen all the time.

I suspect and believe the said Good Samaritan is Calvin, The Apprentice punya Sith Lord

Posted by Sslee > 8 minutes ago | Report Abuse

By the way stockraider said he make 2 myvi from his bet with Netx RI and make a last minute escape with his 0.5 sen,1 million Insas-wb before insas-wb expired as toilet paper.

Posted by UlarSawa > 2022-09-04 11:17 | Report Abuse

HY is good for betting too. Gap big mah. Haiyoh. Correct?


qqq3333

What are popular shares? There are lots of money lying around placing bets on small technology and new IPOs....they don't know it's a sure bet or not but willing to bet on growth.....hy do not fit the criteria

18 seconds ago

Posted by UlarSawa > 2022-09-04 11:20 | Report Abuse

Sori. Sori. Misinterpreted. Haiyoh. Correct?

qqq3333

Ular, I mean 1000 different kinds of shares or companies la

26 seconds ago

Posted by UlarSawa > 2022-09-04 11:24 | Report Abuse

C25 expiry 31 oct 2022 4.30.
C24 expiry 27 jan 2023 4.15

Posted by UlarSawa > 2022-09-04 11:26 | Report Abuse

Ular OKU dunno apa growth and all they talking. Ular see Debt increased Trade payable increased sound familiar only. Haiyoh. Correct?

qqq3333

Ular..try to convince me hy got growth la...not just fluctuations in PL due to price fluctuations

3 minutes ago

Posted by i3lurker > 2022-09-04 11:26 | Report Abuse

Pengerang?
Nobody cares about Pengerang coz you CANNOT gamble Pengerang.

=> be honest its all about the gambling! whether PetronM or HRC

when you asked this question you are giving credibility that it is NOT about the gambling
when it is ALL about the Gambling.

Place your bets !!!

Posted by Johnzhang > 2022-09-04 11:27 | Report Abuse

Is the non stop malicious attack on HY done in good faith? The modus operandi tell you NO!

Since June 2022, a group of Agents coordinated malicious attacks on HY with ulterior motives . The Agents have been spamming days and nights with all sorts of disinformation, half baked stories and baseless assumptions , effectively driving good stock to far lower that its fair value.

The Agents are capitalizing on the fragile market sentiment and serious lack of market liquidity to drive away whatever little buying interest and at tge same time caused fearful and weaker retailers to dump their shares at huge discounts. The modus operandi of the agents is very obvious. If you careful study the trade pattern and observe the activity within the day you shall see the trade manipulation

Are these Agents angels to safeguard you interest ? Think carefully, They are instead preying on unsuspecting retailers.

The Agents and the people behind them are now collecting cheap shares from unwary retailers .

Posted by UlarSawa > 2022-09-04 11:30 | Report Abuse

Not attack but just pointing out the scary part if mishandling the hedging. If continue betting more may end up even more. No one can garanti hedging sure will win one leh. Mgmt so far poor on this hedging is proven mah. Else mana ada loss so huge leh. Haiyoh. Correct?

Posted by Sslee > 2022-09-04 11:31 | Report Abuse

In Malaysia not many companies can grow because there are too many SOE, GLC, GLIC & CLBG monopoly the business.

Posted by UlarSawa > 2022-09-04 11:32 | Report Abuse

Hedging is like buy big or small leh. Good luck win one may lose back mah. Now bad luck lose money can lose even more if bad luck continue leh. Unless HY boss ada pai TiGong popi popi one then different story lah. Haiyoh. Correct?

Posted by tehka > 2022-09-04 11:35 | Report Abuse

If what sslee you say is true then I very respect to you loh! I never imagine that share market got robin hood do charity to help other people and I also can never do like this. Correct or not? Hope sslee also bless in share market loh.

Sslee
Mean I did not sold any after knowing the account is fraud or in other words I do not have the heart to sell the share in the market in case someone cannot afford to lose pick up the share from me.

Posted by UlarSawa > 2022-09-04 11:36 | Report Abuse

That time overly goreng lah. Many sifu sifu making tons of money and laughing all the way to the bank and become instant millionaire. Many also cry apah cry amah at the end and started the war against sifu sifu sekalian. Haiyoh. Correct?


qqq3333

Ular...$18 hy is a historical freak, will not happen again.

6 minutes ago

Posted by i3lurker > 2022-09-04 11:36 |

Post removed.Why?

Posted by Sslee > 2022-09-04 11:36 | Report Abuse

Ular,
When you hedged mean good time you earn less and bad time you lose less.

Posted by Mikecyc > 2022-09-04 11:39 |

Post removed.Why?

Posted by i3lurker > 2022-09-04 11:40 | Report Abuse

always remember, Tomorrow is very likely to be same as today unless you change something.

its like the movie Inception, you must change something to have a different ending.

=> HRC losses from "cough cough hedging" will likely continue. Since tomorrow is the same as today.
[Dragon talk bad about HRC one, not me.]

Posted by Petronm RM65.00 Long Live the Revolution! > 2022-09-04 11:40 | Report Abuse

Ilurker, I already explained the meaning of gambling. So no point you talk about credibility when you have none. Stock trading and any form of business is speculation on future profitability with the risk of loss of capital. So unless you are saying that we all should SUFFER painful starvation (including those that aren't ready) as government cant employ everyone without taxes then you argument only physical delivery is not gambling is a moot point as everything is gambling with risk of losing money

Posted by UlarSawa > 2022-09-04 11:43 |

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Posted by i3lurker > 2022-09-04 11:44 | Report Abuse

the standard Straddle of

Buy Raw Mat
Sell Products

usually results in DIE BOTH SIDES

Buy Raw Mat, raw mat price drops => Huge Losses
Sell Products, products price increases => Huge Losses

thats DIE BOTH SIDES

there is a real reason why branded companies like Marathon like to be self-insured

Posted by Sslee > 3 minutes ago | Report Abuse

Ular,
When you hedged mean good time you earn less and bad time you lose less.

Posted by UlarSawa > 2022-09-04 11:46 | Report Abuse

Ular OKU leh. Mana tau so much to attack HY like you sampai kira interest rate 20% HY need to pay leh. You cakap sampai HY is junk stock leh. Haiyoh. Correct?


i3lurker

always remember, Tomorrow is very likely to be same as today unless you change something.

its like the movie Inception, you must change something to have a different ending.

=> HRC losses from "cough cough hedging" will likely continue. Since tomorrow is the same as today.
[Dragon talk bad about HRC one, not me.]

3 minutes ago

Posted by Sslee > 2022-09-04 11:46 | Report Abuse

Tehka,
Quote, "If what sslee you say is true then I very respect to you loh! I never imagine that share market got robin hood do charity to help other people and I also can never do like this. Correct or not? Hope sslee also bless in share market loh."

That was when I was so naive and innocent to believe that SC and Bursa is there to protect the shareholders interest. After that bad experience I grow wiser and if I smell a fraud I will run fast fast.

Posted by UlarSawa > 2022-09-04 11:49 |

Post removed.Why?

Posted by i3lurker > 2022-09-04 11:50 |

Post removed.Why?

Posted by UlarSawa > 2022-09-04 11:51 | Report Abuse

Judi CW is judi. Not say you invest leh. You judi lagi cakap you invest. Haiyoh. Correct?

Posted by UlarSawa > 2022-09-04 11:52 | Report Abuse

Ular also learning to be penkritik mah. Slow slow lah. Ular OKU leh. Haiyoh. Correct?

i3lurker

Thats Old Story by Syndicate
now New Story by Syndicate lah

you must update yourself by getting more CPE points, correct?

better get off and ... ... let your 6 y/o daughter post now correct?

Posted by UlarSawa > 1 minute ago | Report Abuse

Ular OKU leh. Mana tau so much to attack HY like you sampai kira interest rate 20% HY need to pay leh. You cakap sampai HY is junk stock leh. Haiyoh. Correct?

39 seconds ago

Posted by Sslee > 2022-09-04 11:53 | Report Abuse

Ular what I mean physical you earned refining margin (USD 30 per barrel) but because you hedged at USD 15 per barrel.

Hence instead of earning the full USD 30 per barrel, your net earning is USD 15 per barrel because you lose USD 15 per barrel on your hedge.

Posted by stockraider > 2022-09-04 11:53 | Report Abuse

The reasons why Raider need to uncovered the hidden truth about hengyuan bcos;

1. Innocent party like Ahfah son (Now gainfully employ as Technology System Analyst} has started to be interested of Hengyuan bcos of the huge EPS of Rm 2.22 reported in Q2 mah!
Just imagine a learned person like Ahfah son started to be greedy & interested n willing to accept in gambling on bad corporate governance stock like Hengyuan, what about the rest of laymen down the road leh ?
Alot of damage to their financial health will be coming to these people loh!

2. Also Raider trying hard to save Sifu SSLEE from damaging his prestigious reputation by acting as a fool in promoting Hengyuan loh....!
U see raider has soft spot for SSLEE, he is really kind gentleman & he is trying to do great services to the Society loh!
However Hengyuan which its magic reporting & highly complicated manipulative high finance is very complicated for Sifu SSLEE (general financial knowledge) to comprehend, in addition he has been mislead by people like Probability with his droves of fake duplicated IDS followers & supporters painting a fine picture on HRC, despite its core are roting loh!

It is a relieve for General Raider to hear Sifu SSLEE has a very small exposure on Hengyuan, thus Raider suggest he completely dispose it & switch quickly to Petron for better night sleep loh!

Posted by i3lurker > 2022-09-04 12:00 |

Post removed.Why?