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Technology Stocks : Nam Tai Elec. (NTAI)

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To: Steven Yang who wrote (1613)9/22/1999 2:40:00 PM
From: Steven Yang  Read Replies (1) of 1696
 
Impact of a stronger Yen?

Based on 99Q2 report, NTAI is on its way for a strong rebound in sale and profit for 99 (vs. 98), as indicated by NTAI management. On the other hand, the recent rise in Yen vs. USD is a negative for NTAI. As described in NTAI's annual report, NTAI has more sale in USD and more cost in Yen. Thus, a strong Yen (vs. USD) will hurt NTAI's gross margin (in the form of material cost.) The question is how big the impact is going to be.

The strong Yen could be the reason why NTAI has not kept on rising after 99Q2.

Steven
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