Anyone have any comments on the below story on Zindart (a HK/China based company that makes stuff for Mattel, Hallmark, etc.)? I happen to believe that China will devalue their currency, not because of pressure from currency speculators, but because their industries are becoming less competitive with others in the region.
And I guess I am worried that Deswell might make similar comments in their earnings release.
Dennis
<<ZINDART LTD (down 3-1/2 to 8 @ 10:50 am ET) reported 1Q EPS of
$0.35 vs $0.27 (on a pro forma basis), on revenues of $29.4 mln vs
$26.0 mln. Analysts' mean estimates were $0.35, according to First
Call. NOTE: CFO Feather Fok said, ''With our strong balance sheet
and our cost structure, we believe we have generally insulated
ourselves from the economic difficulties in Asia. Nonetheless,
some portions of our die-cast business are migrating to countries
with troubled currencies. In particular, a core customer has
informed us of its intent to move substantial small-scale
production to another country in 1998, although it plans to move
complex, large-scale collectible items our way. This is likely to
result in a decrease in revenues for the remainder of fiscal
1999.'' (Business Wire)>> |
