Added: Aug 25, 2010
Author: CeresHedge
Duration: 12:56
http://www.cereshedge.com Simple hedge strategy for protecting against exploding commodity prices. Many producers and end users (i.e. large commercial food processors), have been blindsided by rising input or commodity costs that have negatively impacted their profit markets or profits in a big way! If you look at any of their 10-K annual reports filed with the sec, the bulk of them attribute net decrease in profit from rising commodity costs. Some of these companies have hedging departments and those that do not are at the mercy of their suppliers. You would be surprised how many chain restaurants, baking companies and food processors do not utilize hedging strategies and are therefore at the whim of the open markets. Think about this for a minute, if you are a an Italian restaurant chain and you do not control your durum wheat prices, how often can you reprint your menus when your raw wheat prices double? You would be very surprised to find out how many companies, CFO's, VP's are not aware of how easy it is to control their input costs, I know I was! Obviously this is what Ceres Hedge does for those businesses that do not have their own hedge department, we are consultants or a virtual hedge department for those types of companies. We provide simple to very complex hedge strategies to control their input costs. And I felt there was a need for education and that is why I produced this video and there will be more forthcoming as time allows. Hope this helps
Channel: Education
Views: 412