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Technology Stocks : MEMC INT'L. (WFR -NYSE) The Sleeping Giant? -- Ignore unavailable to you. Want to Upgrade?

To: ---------- who wrote (2936)	1/17/1998 12:56:00 PM
From: Zeev Hed	Read Replies (3) \| Respond to of 4697

Doug, look back into your calculus books. If you borrowed for a year at 10%, your interest rate (assuming 50% devaluation) is 120% (most of the debt?), if you borrowed for 5 years, your interest rate is "about" 40%. The main problem facing many chaebols is that before the won'c collapse they had four times as much debt as assets, but the assets were won denominated assets, while half of their debt (on the average) where dollars or yen denominated debt, so now their debt has balloned while their assets have declined. I would not be surpised if many have 10 times as much debt as assets. Thus, if they need to finance new expansion, they must sell assets since no one will let them increase their debt load further. Many will throw in the towel and "surrender" setting the stage ofr the next bull move. Zeev