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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (38227)	6/8/2010 6:04:35 PM
From: E_K_S	Read Replies (2) \| Respond to of 78704

Hi Paul - EONGY or any other European stock denominated in Euros. Is this a falling Euro play? I am not too sure how this plays out with a foreign ADR? As the Euro drops in value vs the $US, will the ADR fall in price too? Do I use my valuable $US to buy weak Euro denominated companies? I own TESCO PLC (a sponsored ADR - TSCDY.pk) which is down 15% in the last 45 days. I thought it was off due to the general market sell off but could the fall be due to the weak EURO? If I believe the Euro goes to parity with the $US, will a company like TESCO denominated in Euros fall another 20% (1 $US=$1.19 EURO finance.yahoo.com ). If this is true, then it might be a good strategy to load up on foreign ADR's for companies that trade mainly in EURO's when I believe the currency has bottomed. A parity value in currencies might be a good target range. EKS