>Short term debt Q3 $50,182,000 Q4 $50,188,00
Malaysia Ringgit 6/30/97 $1 = 2.5237 12/14/97 $1 = 3.8075
If I'm reading this correctly they could service the debt for 33.7% less dollars than the amount borrowed, or an exchange rate profit, at current rates, of about 16.9 million (.68 EPS primary).
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Look, I won't mince words. You're in way over you head with APM. All of this debt is denominated in ringgit. So, if they had 125 mln ringgit ($50 mln x 2.5RM/$) at 6/30, it would now have to be carried at $33 mln (RM125 mln / 3.8RM/$)... or a currency exchange loss of $17 (currencies are immediately marked to market because they are liquid). Debt service (in dollars) may be cheaper, but that's only because the asset they borrowed (in dollars) is worth less. This is BAD, not GOOD.
Nice folk like Jon and Todd have been trying to tell you APM is yelping like a dog; it's time you take a second look. |
