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Technology Stocks : ADC Telecommunications -- Ignore unavailable to you. Want to Upgrade?

To: MikeM54321 who wrote (1193)	10/23/2000 6:18:23 AM
From: Mao II	Read Replies (1) \| Respond to of 1944

Mike: I pulled this from one of your earlier posts regarding the impact of the weak euro (It's from a St.Paul Pioneer Press story dated July 9): "ADC wants to increase its international sales to 40 percent in the next five years from 23 percent today, said Rees, the firm's assistant treasurer. As a long-term solution to foreign currency pressures, ADC is building a $46 million manufacturing plant in Scotland to supply telecom equipment to European customers. The plant, which is expected to open in the next quarter, will lower ADC's cost of doing business in Europe by reducing shipping and other costs. It also will lessen the impact of the strong dollar because overseas sales and manufacturing expenses will both be recorded in the same currency. ADC's action is what is called a natural hedge -- a shift in operations that can minimize the affect of foreign currency translation. " Message 14055147 This plant should be up and running this Q, which should solve the weak euro problem. However, currency fluctuations cut both ways, so ADCT will also now lose upside potential from a weakening dollar. Does anyone have any specific information on this CLEC/DSL exposure issue? While Hambrecht discounts the CLEC exposure, it should be noted that they make a market in ADCT and have done biz for the company; their analyst, Tim Savageaux, also has a position in ADCT. M2