To: Moosie who wrote (6362 ) 5/15/1998 7:46:00 AM From: risk-averse Read Replies (1) | Respond to of 50264
Just in case Indonesia is on the mind of anyone this Morning.... We need to remind ourselves of what Bill C. just said- WE ARE NOT AN INDONESIAN COMPANY, WE ARE A GLOBAL COMPANY. THe countries that DGIV will penetrate expand the GLOBE, as evidenced by Roger's comments on Wednesday. Let us remind ourselves which ones: Roger alluded to SIX or SEVEN Middle Eastern Countries (some include Suadi Arabia, Jordan, Dubai, Emirates Egypt, Balkan States), Vietnam, Korea, Hong Kong, Taiwan HE also said something about Central Europe and the Mediterranean, and Macker made mention of South America. Let us also recall an email posted a few nights ago regarding the DGIV response to the Indonesian issues: (post #5745) Here are the excerpts: "We are not concerned that political instability in the near-term in Indonesia will have an adverse effect on our operations there in the long run. Revenues from our purchase of PT. Erakomindo Puranusa are based on a contracted GUARANTEED by PT. Telekom, and we look for those to be forthcoming later this year. The general economic picture rests predominantly upon the supports and reforms underwritten by the IMF which are unlikely to be removed as a result of today's unrest. Any political or economic "liberalizaton" in response to popular discontent could only have a FAVORABLE impact on the rupiah's exchange rate and on the business climate in that country. (In my humble opinion.) Digitcom's prospects over the next couple of years are NOT vested soley (or, even predominantly) in Indonesia. It is simply that the agreements there have been completed more rapidly than in other markets. We look forward to DIVERSE revenue streams by the end of 1999. And, we're bullish on DGIV! Sincerely, Roger Templeton VP-Communications Digitcom Corporation" This should alleviate the concerns of many who think one country or one market can affect us significantly. In contrast to DGIV, companies that are heavily invested in Indonesia may be affected, but look at what IBM did this past week and realize that GLOBAL companies have GLOBAL revenue streams. Byron put up a post that also may have been lost in the crowd- #5755. A few comments from this post to get us started: "PT Telkom remains the primary provider of domestic telecommunication services... it has the exclusive right to provide domestic long distance telecommunication services for a minimum period of 10 years (until the year 2005) " "Indosat is the dominant provider of international telecommunication services... MTPT granted Indosat and Satelindo an exclusive license on international telecommunications services until December 31, 2004" Now, we have contracts with both companies,and a GUARANTEED revenue stream from PT Telekon for the next 10 years. Furthermore, IIT and TLK shares went UP yesterday, 7.8% and 8.7%, respectively. Are they undervalued - is the mention that Suharto may step down all of a sudden allowing people to realize that these companies are very undervalued and the telecom industry IS HERE TO STAY - re-read post 5755 if you are doubting this. BTW, IF Suharto steps down, the markets will likely recover. If he poses strong reforms that are appealing to the masses, also wait and watch. Seems like everthing there is undervalued now. Finally, as pointed out by several on previous posts ( look at those from Mark C, Bill C., rocketman, bullmarket, and others), our deals in Indonesia have likely been completed at the most advantageous prices around so as to maximize our benefit. I am sure many will have more to say should this issue remain a concern. Be well.