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To: jim kelley who wrote (19220)	10/27/1997 12:26:00 PM
From: Boplicity	Read Replies (1) \| Respond to of 176387

Jim, very interesting comments about China. Where can I find information concering your ideas, so as to back them up with some data. Greg

To: jim kelley who wrote (19220)	10/27/1997 1:04:00 PM
From: McNabb Brothers	Read Replies (1) \| Respond to of 176387

jim, I can't believe that everyone is saying that we are going down because of the Asian markets, when last Thur. night they were up and our market went up at first Fri, but then went down later in the day! Then the Asian markets went down last night due to the fact that we did not go up on Fri.! Asian markets might have started the down fall, but it looks like we are taking the lead in the down turn, especially in the OTC markets! Hank McNabb

To: jim kelley who wrote (19220)	10/27/1997 1:10:00 PM
From: Chuzzlewit	Respond to of 176387

Jim, your comments are quite interesting, and I agree with some of what you've said. The strong US dollar will make Chinese imports very attractive to US consumers, but China still has a very long way to go in creating a modern infrastructure, so I would think that the dollars generated from selling goods here will be reinvested in areas such as computers and telecommunications. The Clinton administration has thus far handled the economy very adroitly, and I don't think they will allow dumping in return for a symbolic victory such as the release of a few dissadents. They've taken a harder line with the Japanese, and they are cognizant of the large trade deficit with China, so I can't see them letting that issue get out of control, because dumping would allow loss of US jobs, and the last thing the Democrats want is increasing unemployment. My take on the situation is this. We are in an environment of global financial markets, and the weakening of any significant market spreads throughout the world as investors seek to maximize their returns. Thus, we have a world-wide ripple effect that is not specific to any country. I can't see the box makers as being hurt by the current economic turmoil, but what I do see is that those stocks sporting the highest betas and P/E's relative to their respective industry peers will be hurt most short-term. As the situation resolves itself the quality companies will again rise to the top, but the purely speculative companies may never recover. Regards, Paul