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To: Matt Webster who wrote (8272)	2/7/1998 1:31:00 AM
From: Sam Scrutchins	Read Replies (1) \| Respond to of 213177

Never believe "we blew the quarter 'cause of foreign exchange" more than once, if ever. Good explanation Matt. What these companies are actually saying is that their 'treasurer', who was taking risks in the hedging game trying to increase profits, got burned and lost money (profits). Sam

To: Matt Webster who wrote (8272)	2/7/1998 8:11:00 PM
From: Phillip C. Lee	Read Replies (1) \| Respond to of 213177

Matt, You are probably right about the simplification of hedging on currency exchange companies play. However, any big international corporation won't just hedge once during any specific quarter. How often they sell short for "x" amount is a big issue, and what price to short is another issue, thus, I believe every big comapny has a sophisticated hedging model to determine: (1) the time to sell short; (2) what price; Hence, when the U.S. dollar value moves lower, the company will short the price lower. And, the more versatile the exchange rates, the more frequently the hedging will be adjusted. Therefore, it is obvious my view on currency exchange variable impacting on company's revenue is correct. If you cannot accept my view, I would be happy to explain more later. Phil