SMARTFLEX ALSO MEMBER OF THE IOMG FAMILY Message Board

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Non-Tech : SMARTFLEX ALSO MEMBER OF THE IOMG FAMILY

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To: kolo55 who wrote (306)	7/18/1997 1:42:00 PM
From: Douglas V. Fant	of 558

Paul, Since I work on multinational contracts, I can answer that one. Most multinational commercial contracts include very specific terms on the currency and method of payment. Assuming that SFLX is not selling its parts to another plant of a dd maker in the Philippines, in the currency provisions, the currency specified for payment is usually a major currency such as the yen or the dollar. Now also usually the parent company independently trades in currency futures so as to "hedge" against major currency shifts amongst its total portfolio of commercial contracts worldwide. I'll bet that SFLX either has someone in their Treasury Dep't conducting such hedging, or hires out a major brokerage firm to do it for them (In fact their SEC filings may indicate whether SFLX is conducting such hedging). Thus my best educated guess is that a devaluation of the Thai and Philippines currencies may have some effect on SFLX; but that effect will be offset by SFLX's currency hedging and also by their lower parts production costs going forward because of the devaluation in the Philippines. Paul- I really appreciate all of your posts here- glad that I could give something back!

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