Addi, IMHO the effects to LSI will be roughly a wash - neutral. They will lose some percentage of their consumer-based sales in the affected Asian markets, but will get lowered component costs. MORE IMPORTANT, I think the Asian troubles could get MUCH worse, and the IMF could start running out of spare cash to stop the bleeding. The Korean and Japanese markets are quite important in the world..and both depend to significant extent for sales to the SEA countries having trouble. Korean companies are leveraged so heavily that there almost HAS to be some bankruptcies, IMO. As for Japan, the big banks are right on the brink -- if the Nikkei goes under 15,000, some are going to have to start calling in their loans, as the banks will no longer have the equity to support the loans. Once that process starts, real estate gets sold...prices fall...equity support for loans is diminished...more real estate is sold to raise cash...etc.
So, when you asked me which stock I would invest in right now -- well, my answer, really, is NONE. Too dangerous until we see the resolution of some of the Asian problems... All IMHO, of course... TSO |
