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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Teri Skogerboe who wrote (3226)	10/31/1997 8:56:00 AM
From: Sam Citron	Respond to of 10921

Good work, Teri. I would caution about making facile assumptions about this Asian exposure issue, such as that companies with the greatest exposure will automatically take the greatest hit in earnings. Must remember that semi equipment is not a luxury consumption item like a Mercedes Benz automobile. Semi equipment is seen by these countries as vital capital equipment which earns foreign exchange on the chips they export. Certainly earnings will be penalized by unhedged currency translation exposure. Asian growth will also slow, which may impact aggregate demand for consumer electronics (which had been booming). But it is not a slam dunk linear effect. It may result in considerable economies for agile semiequips that have significant manufacturing operations in SE Asia. We should be asking where these companies do their manufacturing and R&D and how the currency issue affects input costs as well. SC