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Technology Stocks : Avant (AVNT) -- Ignore unavailable to you. Want to Upgrade?

To: Cautious_Optimist who wrote (1252)	10/28/1997 5:32:00 PM
From: Chung Yang	Respond to of 3441

Even though I am long on AVNT, the relative stability of the stock surprised me too. Although, I must point out one thing. HK crash does not reflect the relative health of the "relevant" asian markets. According to some experts, the problem stems from the troubled economies of the Southeast Asia. The currency problem that they speak of have actually been brewing for several months. They don't affect AVNT because they are not major consumers of EDA products. AVNT's main customer based are those countries with design and manufacturing capabilities, Japan, Taiwan, Korea, and Singapore (technically they are a part of ASEAN). Although, their relative markets have been affected by the HK volitility, their economies remain strong. Since technology figures very largely into the GDP of these countries, I can only conclude that that their technology industries remains strong, therefore demand for EDA products should continue to be strong. So that is a good news for the sector. As to why AVNT remained stable, my guess is that the big investors saw that long term major contacts in Asia is producing a steady and continual revenue stream. Key acquisition and increase in the customer base has furthermore boosted and stabllized revenue notwithstanding the recent revenue dilusion and the possible negative effect of investor confidence on the outcome of the litigation. - Chung >>>Of all the tech stocks with Asia exposure, AVNT should have shown a lot more volitility than it did. This stock stays up so long it would make a porn star envious. However, the final scene has not been shot, and could, uh, er, eh... ... prove to be embarrassing when the covers are removed. Hope the Avant! defendents have their Depends on. Patience is the correct strategy. And a sense of humor helps to get through the strange market behavior with this company <<<