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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 159.42-1.2%Jan 16 9:30 AM EST

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To: marginnayan who wrote (103075)8/21/2001 9:29:11 AM
From: Jim Willie CB  Read Replies (1) of 152472
 
US-based multinationals sometimes hedge vs US$
but it is not easy to do well
Proctor & Gambler tried a few years ago, but failed badly
they took a $200m writeoff
the challenge is to completely avoid temptation to stray
hedging is not so difficult
but staying clear of a little extra (gamble) is tough
a little intelligence in this regard is dangerous
zero insight leads to simple hedging
some shmartz leads to small/medium currency gambles

a shifting dollar doesnt matter to about 15-20% of multinationals imho
it matters a lot to the rest
most dont know how to do it, so they dont do it
later they wish they knew how
eventually some try
and a few get snared by temptation to gamble
it can be like walking on a knife's edge
/ jim
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