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Technology Stocks : INDONESIA'S PT TELECOM(TLK) -- Ignore unavailable to you. Want to Upgrade?

To: Jyoti sharma who wrote (261)	2/5/1998 7:45:00 PM
From: Duke	Read Replies (3) \| Respond to of 947

Jyoti, Tom: Since you two talking about PHI and HKT, they're on my watching list also, together with SAT. What is your opinion for PHI and SAT? It seems to me that CHL (China Telecom) is doing good. Thanks in advance. Duke.

To: Jyoti sharma who wrote (261)	2/5/1998 7:52:00 PM
From: Duke	Respond to of 947

Clinton wants to fund IMF but faces fight in Congress over money Republicans likely to angle for role in Asia policy, IMF reforms By Leon Hadar CLINTON Administration officials reiterated on Wednesday their support for the International Monetary Fund's role in calming the Asian market turmoil but many lawmakers remain opposed to the administration's request for US$19 billion (S$32 billion) in additional IMF funds. And most observers expect the Republican-controlled Congress to deny the new money. The view in Washington is that Congress will block the request unless the Clinton Administration accepts more congressional involvement in devising and implementing US policies to resolve the Asian crisis as well as agree to major reforms in the IMF. Increasing US financial support for the IMF was a "very high priority" on the Clinton Administration's policy agenda, White House Press Secretary Mike McCurry said on Wednesday. Mr McCurry was speaking during the daily White House press briefing, which, for the first time in more than a week, was not dominated by Mr Clinton's alleged involvement with former White House intern Monica Lewinsky. US Deputy Treasury Secretary Lawrence Summers, meanwhile, warned lawmakers that US backing for the IMF's bail-out programme in East Asia would make it easier to restore stability to the region and prevent contagion to other economies. "Even if stability is now restored, the effects of the crises to date on the United States will be real," said Mr Summers during his testimony before the Senate Finance Committee. "If the instability were to spread or intensify the potential risks to American jobs, American financial markets and our national security could be grave indeed." However, Mr Summers and other US officials have expressed a willingness to discuss with Congress several proposals to reform the IMF as part of a compromise that will allow Congress to approve the new funds for the IMF. "The IMF needs to be better governed," said Mr Summers during his testimony, indicating the administration wants the institution to be transparent and accountable in its policies. Indeed, many US lawmakers are furious that both the IMF and the US Treasury have refused to make public an IMF memo which raised some questions about the initial approach of the IMF towards the financial crisis in Indonesia. Several bills introduced in Congress in recent weeks call for abolishing the IMF. Other lawmakers want Congress to prevent the administration from using a special Treasury fund to channel US money to the IMF.

To: Jyoti sharma who wrote (261)	2/6/1998 1:12:00 PM
From: tom	Read Replies (1) \| Respond to of 947

More info on Morgan Stanley downgrade of TLK - They have lowered their eps estimate for 1998 to 134 Rps and in 1999 to 181Rps per share - TLK will only get a 3.5% nominal tariff increase in 1998 (when inflation will be 30-50% in the best case scenario or even 20% if you believe Suharto) so real tariff rates will fall by ....30-50%-ish - 1997-2002 eps growth 5% at best - Telmex operating margins fell from 52% to 35% after the Mexican devaluation when they saw a 20% decline in real tariffs - KSO operators are in big, big trouble (heavy fx debt, declining real tariffs). They would need tariffs to rise by 60-90% to make up for the the fall in the Rupiah. They either need tariffs to rise or the MTR payments to TLK to be reduced. As these MTR payments are 50% of TLK's income it is reluctant to give them up. As the government is reluctant to see inflation skyrocket it is unwilling to raise tariffs! - Cellular is horrendous. TLK owns 43% of Telkomsel and 22.5% of Satelindo. Satelindo wrote off 30% OF ITS SUBSCRIBERS IN 4Q97 ALONE!!!! Its accounts receivable now stand at 365 days and 1/3 of these is uncollectable (and that's the company's view). Satelindo is also involved in the KSO projects and has debt of US$500m with US$200 due between march and August 1998. Nice! They also expect 50% of Telkomsel's subscriber base is deliquent. TLK is enjoying huge outperformance because of a flight to quality in the domestic market (like GG, ISAT, TINS etc). This will not last for ever. Tom