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researcher59

05/11/06 1:31 PM

#43360 RE: kipp440 #43353

kipp440: ARSD earnings are very unpredictable. The large drop in gas prices for Q1 is both a positive and negative .... positive because gas is a major cost of production and negative because they do a lot of hedging and so will suffer substantial hedging related losses, the extent of which will depend on the accounting treatment they use ....

Also, their chemical product pricing probably came down with gas prices, but possibly not as steeply .... good luck.