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Technology Stocks : Dell Technologies Inc.
DELL 122.46-8.5%3:59 PM EST

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To: musea who wrote (89544)1/16/1999 4:55:00 PM
From: Chuzzlewit  Read Replies (3) of 176387
 
Welcome to SI and the Dell thread. If you've been in since the IPO you probably own several small countries by now -- or at least a Greek island or two! <VBG>

A floating Real is a net benefit to Brazil, but the depreciation of the Real makes the computer more expensive for Brazilians. Labor costs for Dell's Brazilian operation will decrease, but the cost of components will increase if they are purchased in Reals. More likely, they will be purchased in USD so the component issue cost isn't a factor. Exports from Brazil will be cheaper (and that includes PCs sold by Dell to SA). The real (no pun intended) problem is whether the Latin economies will be dragged down. If they are this will obviously not be good for Dell's sales. The other potential problem is losses incurred through currency translation effects.

TTFN,
CTC
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