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Technology Stocks : SAP A.G.
SAP 242.21+0.9%11:23 AM EST

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To: Ray Rueb who wrote (370)2/12/1998 2:07:00 AM
From: Ray Rueb  Read Replies (2) of 3424
 
Deutsche Mark Price is part of SAPHY price

Please remember that the price of the Deutsche Mark is part of the price for SAP ADR's.

The formula for calculating the VALUE of SAPHY is (I think)
((price of SAG3 in Germany) * (price of Deutsche Mark vs USD))/3
The daily PRICE of SAPHY is determined by supply and demand so it will vary from the above formula, but only a little.

A chart (and some technical chart analysis) for the Deutsche Mark is:
tfc-charts.w2d.com
NOTICE: Technically, short term very bearish, long term bullish

When you look at it, you'll see that while SAPHY has been steadily going up, the Deutsche Mark has been steadily going down. This means that SAG3 in Germany has REALLY been going up.

I think the drop in the Deutsche Mark creates a "stored value" which will be "released" as the Deutsche Mark eventually rises against the dollar.

I think the Deutsche Mark has been falling because of the high unemployment rate in Germany due to reunification and economic realignment and elimination of inefficient businesses. Would someone in Germany care to comment on this?

BUT, Also remember, as the Deutsche Mark falls, the VALUE of a sale of SAP software in the US rises. Can this company really lose?
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