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Technology Stocks : Creative Labs (CREAF) -- Ignore unavailable to you. Want to Upgrade?

To: taxikid who wrote (7209)	12/14/1997 7:56:00 PM
From: JP Sullivan	Read Replies (1) \| Respond to of 13925

But why not? One reason that the manufacturer wouldn't be able to sell in won is if it purchases its components in US$ or some other currency. Since Korea has the capability of manufacturing hi-tech components (witness the numerous chip plants these chaebols have), not to mention the (excess) capacity, I think it's likely or at least possible that the drive is made of locally manufactured parts, if not entirely, then at least a large proportion. As a buyer, CREAF would want to negotiate the best possible deal for itself, and I think paying in won or some other Asian currency (perhaps Sing $) would have been the sensible thing to do even if the deal was inked before the Asian implosion. Finally, Korean companies have to be dying for cash right now, and even if CREAF had agreed to pay in US$, I think it's entirely possible that CREAF may be able to demand a price cut. Then again, I could be entirely wrong. But since we're basically speculating here, I figured what the heck. Winston