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.

Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: klaus pluszynski who wrote (5910)	6/18/1998 9:04:00 AM
From: Katherine Derbyshire	Read Replies (1) \| Respond to of 10921

>>I can see two reasons, why the BTB should react favorably to a stronger yen: 1. US manufacturers will be able to better compete against their asian competitors. More orders go to the US and hence the order component in the BTB will rise, even if the overall market isn't growing<< True, but that wasn't my point. My point was that the BTB uses dollars, so doesn't need to do currency conversions. Certainly both the positive and negative effects of currency on the industry will be reflected in the BtB. >> 2. Winning an order in the asian region will bring in more $$$ when translated into USD. Again, a positive for the BTB.<< False. US companies generally bill in US$, making the currency conversion the customer's problem. >>If the unexpected happens and the Yen declines significantly over the next years, then those beaten down US High Tech manufacturers with heavy competition from Asia (semi eq., disk drive components) should stage a roaring comeback. << The yen has already declined significantly, from a 12 month high of 112/US$ and a mid-decade high of ~80/US$ to a recent low of 146/US$ before yesterday's intervention. As for the US equipment companies being "beaten down," all but two or three of the world's top ten equipment companies are based in the US, as are four of the world's top ten chip companies. The US semiconductor industry has been "roaring back" since at least 1994 or so. Katherine