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Technology Stocks : Applied Magnetics Corp

APM 1.330

+1.5%

1:06 PM EST

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To: Don Earl who wrote (11113)	12/23/1997 11:13:00 AM
From: Don Earl	Read Replies (1) of 12298

Take a look at the NASDAQ sites business news. It's a copyrighted article so I can't post it. The title is "US Economy's Growth Rate Revised Down". About 2/3 of the way down there is some interesting information about corporate profits being way up due to over seas operations. This is exactly the kind of situation APM is in. They do most of their manufacturing in Asia where costs have dropped substancially because of exchange rate advantages. They then sell the finished products to US companies in US dollars and export the goods to those companies factories in Asia. Right now every tech stock, no matter what it is, or how they do business, is getting hammered everytime a news item pops up with the word "economy" and "Asia" in the same sentence. At a certain point this hype is getting absurd. How many US companies depend on exports to end users in Korea for revenue? Japan and China currency has slipped less than 5% against the dollar in the last year. That might affect Microsoft a little bit, over 40% of their business comes from end users outside the US. 1 or 2 percent maybe? The companies that manufacture in Korea, Maylaisa, etc. now pay $2 for what cost $3 six months ago. The biggest disadvantage to actually studying the stock market, rather than watching CNBC and doing the lemming thing, is being too early and sitting on a paper loss until the smoke clears. Anyone want to bet that come January 2nd all the analysists start upgrading a bunch of techs because of currency advantages?

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