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To: Michael Allard who wrote (6649)	12/21/1997 3:56:00 PM
From: Jim Lurgio	Respond to of 152472

I like the way you interpted that Mike . Keep up the good work.

To: Michael Allard who wrote (6649)	12/21/1997 10:05:00 PM
From: Dan Ross	Respond to of 152472

You need to discount those #'s back to today using the firms WACC.....the price is about $90 from my calculations...remember though that the stock market is about perception.....the royalty thing is still in the air with regards to 3rd generation stuff.....At least that's the way the market percieves it....If ERICY signs a license....LOOK OUT!!!! $15-$20 increase in ONE DAY IMO..... Dan Ross

To: Michael Allard who wrote (6649)	12/22/1997 6:10:00 AM
From: Jim Lurgio	Respond to of 152472

By Yoo Choon-sik SEOUL, Dec 22 (Reuters) - South Korea was hit by a fresh credit rating downgrade on Monday, but the president-elect moved to calm nerves by pledging to abide by terms of an International Monetary Fund (IMF) rescue. Moody's Investors Service downgraded the country's foreign currency ceiling for bonds to Ba1 from Baa2 and ratings for bank deposits to B1 from Baa2. Analysts said the rating cuts would likely impose no new hardship on South Korean debt issuers which had already found it nearly impossible to borrow in international markets. News of the downgrades, which ordinarily would have sparked a selling spree on the stock market, hardly made an impact as investors focused more on domestic factors. ''The cuts are more a belated recognition of reality on the market than an implication of how international communities foresee the future,'' said Kang Myung-hoon, an analyst at Hanwha Economic Research Institute. President-elect Kim Dae-jung reaffirmed he would abide by the terms of the IMF-led rescue package during a courtesy visit from U.S. Ambassador to Seoul Steven Bosworth and U.S. Deputy Treasury Secretary David Lipton, an official at Kim's party said. Moody's said the downgrade, followed later on Monday by cuts in ratings for 20 banks and nine top-line companies, reflected continued concern that the country's near-term foreign currency financing needs may be greater than previously expected. Those affected by the ratings cuts included Pohang Iron and Steel Co (POSCO), Korea Electric Power Corp, Samsung Electronics Co, Hyundai Motor Co and SK Telecom Co. ''The news was not surprising in that South Korea has already had difficulty borrowing abroad,'' said Mok Young-chung, an analyst at ING-Baring Securities branch in Seoul. ''This indicates international lenders are jittery over the future and are waiting to see what the next government's policies will be and how they will work.'' Moody's also said the new government had the opportunity to implement economic reform and adjustment measures, which the outgoing government had found difficult to take. ''Success on this front would likely restore financial stability over the intermediate term, possibly leading to an eventual improvement in the country's credit profile,'' a Moody's statement said. Since winning the presidential election last Thursday, Kim has said repeatedly that his government would faithfully abide by all the terms and conditions attached to the record $60 billion rescue package arranged by the IMF. Kim does not take office until February 25 next year, but President Kim Young-sam has said he would consult the president-elect on most state affairs. Kim Dae-jung alarmed the international community during the election campaign by suggesting that he would reopen negotiations with the IMF. South Korea's agreement with the IMF calls for the Seoul government to sharply reduce economic growth and fiscal spending and tighten liquidity. Stock investors were more concerned about soaring interest rates and the renewed weakness of the won against the dollar. The composite stock index closed down 1.03 percent, or 4.13 points, at 396.06 after a day of wide fluctuations. ''The market won't be shaken up by Moody's as the negative factors have already been reflected and nothing fundamental has changed. It's not a shock for investors,'' said Peter Kim, a broker at HSBC James Capel. But the news took its toll on the won currency, which was already weakening due to dollar demand for import settlements and debt obligations, dealers said. It closed trading at 1,715.0 against Friday's 1,550.0. ''Korea is now treated as junk bonds. This throws cold water to credibility in the private sector,'' said a local bank dealer. Separately, POSCO said on Monday it had secured $266 million in a loan syndication by 16 international banks, the first such loan given to a Korean company in months. POSCO is the world's second largest steelmaker and a favourite among foreign investors. ^REUTERS@ 05:10 12-22-97