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Technology Stocks : QUANTUM -- Ignore unavailable to you. Want to Upgrade?

To: Rational who wrote (6630)	12/13/1997 1:30:00 AM
From: William T. Katz	Read Replies (3) \| Respond to of 9124

Sankar, You say "The Japanese and Koreans will no longer be able to do this in future since their cost of capital will go up enormously. A large part of the cost of making is the cost of capital." With the incredible devaluation of the Korean won, they will be able to export disk drives very cheaply while they won't be able to spend on new production facilities. Am I wrong in thinking that devalued currencies allow the Koreans to spend less on labor, plant costs, etc. and therefore their costs are much less than even a company making disk drives in Japan, Singapore, and certainly Ireland. So they will actually be able to make a profit while still "dumping" unless there is further devaluation of the yen and other Asian currencies. When you refer to the "cost of capital" are you referring to the rate at which the international banks loan money to the Koreans? That rate is clearly hiked but that shouldn't prevent their making cheaper disk drives. This is one of my biggest concerns at this point since it's already happening with DRAM. I'm on the sidelines now, having capitulated. I'll be spending some time this weekend reevaluating my strategies and different tech stocks to see where the real bright spots are in this near total tech carnage. I'll definitely reinvest in QNTM at some time but I'm still evaluating how large of a position is warranted given some of the issues. -Bill