Vitech America tackles Brazil Message Board

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Technology Stocks : Vitech America tackles Brazil

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To: Michael Burry who wrote (96)	10/5/1997 3:26:00 PM
From: AJ Berger	of 153

30% Brazilian Loans should be put in context of their inflation rate. they get PAID with more of their currency to adjust for inflation, so they can afford to LayOut more interest to local banks. Consider that the Brazilian business model is based a great deal more on business relationships, where using a local bank, mean you get their computer business, as well as many associated companies and vendors. These people are not stupid, if they would have been better off borrowing overseas, they would have. I mean, Compaq is trying to break into this market, but does not stand much chance when Vietech has already locked up many close business relations. This type of strategy is actually how business was done in the United States 20-30 years ago, when it had a much more closed economy, and was mostly exporting to the rest of the world, instead of now importing to support it's voratious consumers. I believe loans like this are exactly why you should invest in VTCH as a Brazilian economic growth play, not just to purchase another WinTel Box mover.

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