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Technology Stocks : Western Digital (WDC) -- Ignore unavailable to you. Want to Upgrade?

To: Rational who wrote (8174)	12/12/1997 5:32:00 PM
From: Pierre-X	Read Replies (2) \| Respond to of 11057

Sankar, interesting macro characterization of the situation. It certainly seems likely that credit crunching overseas will hurt leveraged players. However I don't necessarily agree with your statement: banks raised huge amounts of capital overseas at cheap dollar-denominated rates. Are not interest rates much higher in the US relative to Asia? Contributing to dollar DEMAND and therefore exacerbating exchange rate crisis? What percentage of that debt is dollar denominated? Some speculate about the possibility of a rate cut by the Fed to beat up the dollar... This is the time to pick US DD sector stock I disagree, much of the projected growth in PC sales was to have come from Asia. Slashing of those growth rates by analysts with mighty strokes of the pen will cause the long term outlook for many PC-technology firms to go up in smoke. The DD companies need demand growth to climb out of their supply bubble -- where will it come from? Time to short DELL and GTW. No way are those guys going to maintain 40% growth. I shall await recovery of fundamentals in my growth geographic sectors before re-establishing long positions. PX (shirtless, soon to be penniless) P.S. Damn, what the hell's all this INTC doing in my portfolio? Get it outta here! <g>