Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Trinity Biotech (TRIBY) -- Ignore unavailable to you. Want to Upgrade?

To: milton who wrote (9297)	5/14/1998 2:53:00 AM
From: HeyRainier	Read Replies (1) \| Respond to of 14328

Milton, The effect of the eu may be very positive for triby. The effect on TRIBY would depend on a variety of factors, but one I have in mind is the relative strength of the Euro to the US Dollar, and also, the geographic breakdown of TRIBY's sales. Assuming TRIBY's earnings are expressed in Euros, there isn't much benefit diversifying into TRIBY if the Euro's strength relative to the dollar is going to reduce the value of dollar-denominated profits (assuming a high percentage of TRIBY's sales are from the US). It can in fact be a liability. From a different analogical perspective, that would be like having a US business selling high quantities of goods in Korea, but with a weakening Won, earnings, when translated back into US dollars, amount to much less than before. The concept of exchange rate risk will exist as long as there is no one world currency, and so in order to understand the benefit or liability to TRIBY from a European currency standpoint, I believe one first has to have an understanding of just how strong each currency will be relative to each other, and how the geographic breakdown of sales will be correspondingly impacted. Rainier