Exide: Overbought or bargain? Message Board

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Technology Stocks : Exide: Overbought or bargain?

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To: patrick w. carty who wrote (56)	8/10/1997 7:21:00 AM
From: Bob Frey	of 125

The European business is transferd to US dollars at the exchange rates of the quarter. The European business in 97 at 63% of $ 2,333,230,000.00 would have been $ 1,469,934,900.00. If you take a 10% currency charge for the conversion to US dollars Exide would have givin up $ 146,993,490.00 in sales and @ 23% gross profit about $ 33,808,502.00 in profit or about $1.50 a share. I don't follow currency rates very close but I do know the European exchange rates are at many year HIGHS. I think that the currancy rates moved more than 10% in the last quarter and if so the cost to Exide and all companies doing business in Europe was huge. Currency rates can also have a positive affect by moving the other way... I think I remmeber them getting a gain of about 90 million one quarter a year or so ago. Another major problem has been the cost of lead increases that Exide had to pay. This cut deeply into profits, forced price increases and should have leveled off and may even come down in the near future. If it does come down in any significant way it could be a big gain for Exide in Europe. At any rate EXIDE ( EX ) is a long term buy in my opinion! Go Exide!

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