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To: Emil T. Colosimo who wrote (26286)	12/7/1997 11:23:00 PM
From: Stoctrash	Read Replies (1) \| Respond to of 50808

Re: Fire sale(s) What are they quoting ASND for? ....30-35? But Mgnmt wants 40? <sigh....> ....didn't own any of that dog on the way down! John or someone do a little math on that one..?

To: Emil T. Colosimo who wrote (26286)	12/7/1997 11:41:00 PM
From: CPAMarty	Read Replies (1) \| Respond to of 50808

Any buyout price would have to be at least $45/share given the control premiums paid in in a takeover situation. However, it could be much higher given CUBE's prospects

To: Emil T. Colosimo who wrote (26286)	12/8/1997 3:03:00 AM
From: JPM	Respond to of 50808

Asian problems mean increased investment in China... scmp.com Tuesday December 2 1997 Turmoil to divert investment to mainland JASPER BECKER in Beijing The mainland will benefit from the economic crises affecting much of Asia, because more foreign investment, especially from Japan, would be encouraged to flow towards China, an analysis in the Economic Daily says. In a half page commentary looking at the lessons to be drawn from Mexico, Albania, Thailand and South Korea, analyst Zhang Qizou said China had nothing to fear. In recent years, the mainland had adopted suitably tight financial and currency policies, successfully reduced inflation and maintained sustainable economic growth, Mr Zhang said. "Our forex reserves are US$130 billion, and the degree of openness of our capital market is suitable to our natural condition," Mr Zhang said. Yet, he said, China should draw five lessons from what happened in these countries. First, it must always pay attention to changes in international financial markets, especially the "negative influence of the sharp increase of virtual capital", Mr Zhang said, referring to computer generated trading, which has raised the global volume of foreign-exchange trading to $1.5 trillion, of which only $30 billion is real. "On the one hand, we have the unrestricted growth of large amounts of virtual capital; on the other, stagnation of material production. "There is a growing gap between the financial assets' volume and growth rate and the actual production volume and growth rate." Economic stability depended on turning financial assets into real assets. "Once the preconditions for this waver, people will lose confidence in financial assets," Mr Zhang said. Second, he urged vigilance for attacks by "hot money": whenever a country carried out a tight monetary policy to curb inflation by raising interest rates, speculative hot money would come in and increase that country's foreign reserves, adding pressure to sell and forcing the central bank to increase the currency in circulation. When a country loosened monetary control and cut interest rates, then hot money quickly fled. The amount of hot money globally amounted to $7.5 trillion, the author claimed. A third lesson was that China should maintain a sound economic structure and maintain stability. Mr Zhang said the other countries suffered from a huge amount of bad debt, non-performing loans and an unbalanced economic structure. "We also have these problems but to a different degree," he said. China should avoid the mistakes of other countries, which had been too hasty in opening up their capital markets and making their currencies fully convertible, Mr Zhang said. <h2> A fourth lesson was for China to maintain the stability and flexibility of its foreign exchange policy. ie, no devaluations </h2> "We can see from these crises that a country must keep adjusting its foreign exchange policy as the domestic and international environment changes," Mr Zhang said. "We should not over or undervalue the yuan exchange rate," he cautioned. "While pegging the yuan, to the US dollar, we should leave a lot of room for manoeuvre." Finally, China should clean up its financial system and avoid the kind of illegal investment companies which sprang up in the other four countries, Mr Zhang said. "The crisis which started on stocks, securities and bonds, and trust investment companies led to a general financial crisis and eventually political and social turmoil," he said. In particular, he warned against Albanian-style pyramid schemes, pointing out that such problems also existed in China, but to a lesser degree.