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

To: Joseph Beltran who wrote (5103)	7/8/1998 6:28:00 PM
From: Lee	Read Replies (1) \| Respond to of 9980

Joe, Thread, A few stats: whitehouse.gov It's interesting to note that the US capacity utilization rate is about average for recent history, while unemployment is on the low-end although our labor force is at an all-time high. There may not be enough able bodies to get capacity rates much higher given sufficient world demand. Its also interesting to note that employment costs tend to spike up quickly and come down gradually. The Fed has a good reason to be concerned here; they have no time to react when these costs jump. Wages will be going up at faster rates than in the past. The only way for goldilocks to further let down her hair is for forced labor movements due to acceleration in displaced workers. Should the Fed tighten? The markets say not at this time. Cheers to all, Lee

To: Joseph Beltran who wrote (5103)	7/8/1998 10:01:00 PM
From: don pagach	Read Replies (1) \| Respond to of 9980

Joseph, OT Are you looking at Debt(book value)/equity(book value) or D(book value)/E(market value), since the Korean market has been battered the second would of course look pretty terrible. As for transperency you are right in comparison the US looks great, but look at the emphasis we put on earnings (article on the super-gung-ho-salesman in today's WSJ), earnings are incredibly managed today. Even Yahoo today, the company took a $44 million charge (basically the purchase price of a company it bought this quarter), instead of recording the assets and goodwill of the purchase and then amortizing those amounts over the future (which would of course hurt future earnings) Yahoo expensed the entire amount this qtr. So the revenues from this company will help future earnings but no expenses to match against, yeah Yahoo. Although this is no different then numerous other comp. See for example Brilloff's Barron's column on Disney's purchase of ABC-based on the acct. Disney didn't get hardly any net assets in the purchase. Geez sorry for the diatribe, but acct. is getting worse and worse, Sunbeam is just one example. let's get back to asia. P.S. :) - Have you noticed that Motorola has actually increased in price by about 10% since it directed second qtr. earnings down to -.01. The comp. then reported +.04 and everyone was jubilant....