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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: MikeM54321 who wrote (4319)	6/9/1998 10:04:00 PM
From: Frodo Baxter	Read Replies (1) \| Respond to of 9980

>But don't forget, "Asian crisis is good for us." Yeah right. Tell it to these companies. That's in incredible straw man. I've never heard ANYBODY suggest that the Asian crisis is good for corporate profitability. They've said it's good for the CONSUMER. And that is quite clear. Inflation is nil and companies have no pricing power, commodities and oil are cheap and plentiful, and interest rates are if not low, at least not heading higher. Sounds like Goldilocks to me. Remember, when someone else gets poorer, you get richer.

To: MikeM54321 who wrote (4319)	6/10/1998 9:21:00 AM
From: MikeM54321	Read Replies (1) \| Respond to of 9980

Re: Asia Warnings Here's another. Speaks for itself. ****************************** Boeing To Cut Production in 1999 SEATTLE (AP) -- The Boeing Commercial Airplane Group plans to cut production on the jumbo 747s by 30 percent in 1999 because of a decline in demand stemming from the economic crisis in Asia, the company said. ''The continued slow traffic growth in Asia has caused some airlines to negotiate slides in deliveries of their 1999 747 orders or to substitute other Boeing airplane models for their existing 747 orders. This means we have to reduce the rate on the 747 program,'' Fred Mitchell, the group's executive vice president of airplane production, said Tuesday. Boeing also said its production plans would likely result in elimination of some jobs in the Commercial Airplane Group, in addition to the 12,000 already announced. The company plans to begin reducing employment in mid-1998.

To: MikeM54321 who wrote (4319)	6/10/1998 10:19:00 AM
From: MikeM54321	Read Replies (2) \| Respond to of 9980

Re: Asia Warnings Last night when I was reading the slew of Asia warnings, I was thinking what in the world will it take for investors to take notice that there is "real" trouble in Asia? I hate sitting here watching my favorite tech stock group (networkers) going higher and higher without me. Well it occurred to me that what may get investor's attention is the threat of defaults and maybe, just maybe, the very remote possibility of bankruptcy of a well known tech company. Most techs can't go bankrupt because they don't owe anyone money. Most have super strong balance sheets. Well it's interesting because this morning, Western Digital said something pretty significant(IMVHO) and it seemed to not cause that great of a stir? I don't know anything about storage companies but I'm guessing they must have some LT debt to pay off. Just thought I would post it in case some may have missed it. To me it's significant(IMVHO), but my opinion sure doesn't have any effect on the markets. I know, I know. Liquidity, liquidity, liquidity. :) MikeM(From Florida) ******************************* Herb on TheStreet By Herb Greenberg 6/10/98 Weak-kneed Wednesday: Can't wait to see: The spin HMT Technology (one of this column's old -- ahem -- friends) puts on its outlook now that Western Digital, one of its largest customers, prereleased a lousy quarter -- lousy in the form of a loss of at least $100 million. Western Digital also warned that unless conditions improve, it may be in technical default of its loans.**