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

To: Alan Hume who wrote (6699)	12/15/1997 2:26:00 PM
From: BroSnack	Read Replies (2) \| Respond to of 9124

alan: the 2 primary bearish signals out of asia (at least imo) are 1: growth is expected to slow substantially in asia over the intermediate term (1-3 years, at least), and acutely in the next 12 months. roughly 30% of american exports are to asia. the assumption is that a country will import less if its economy is slow, and this relationship seems to have held up over time. this translates into bad news for american exporters, particularly those that trade with asia. 2: the deprecitation of asian currencies versus the dollar allows americans to import asian products even cheaper than before. it is possible in theory (though i don't know whether their actual p&ls would support it) that this devaluation will keep fujitsu, et al., in business for awhile longer. if it costs me 100 won to produce a product, and i used to sell it for 120 won to american buyers, a 40% devaluation means that i can actually increase the price i charge in won up to 40%, and it is at least as good a deal as it was before, because your dollar can now buy 40% more won than before. since i am a korean producer, and i care mostly about the nominal won i make, the devaluation is pretty good for me. i can make a bigger profit, and you can get my product cheaper. btw: which country were you in? the usa, or india? regards, broshat