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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: K. M. Strickler who wrote (58549)8/17/1998 10:39:00 AM
From: PAL  Read Replies (2) | Respond to of 176387
 
<< The question for me is how much the Russian and Asian economies
affect other world economies which in turn effect our economy.>>


The US economy is heavily dependent on the world economies because we sell tons of goods and materials to foreign countries. Russia imports a lot of grain from the US, which in turns affect our farmers. There are only 7 countries in the world who have food surplus, the rest has to import from those seven countries. Just take soybean, ingredients for tofu, tempeh etc. America exports to Asia. With the devaluation all over the Orient, food becomes expensive. The ripple effect is that if you don't have enough to eat, you don't buy nonessential items like Coke, Kodak, computers etc.

Dell is not dependent on Asia or Russia except for supply from Asia, so that it is rather immune from the crisis. But expansion to China could be impacted should China be forced to devalue as well.

I am both short and long on Dell options. Although overall I do not expect any loss which ever Dell stock come Friday, I will be much ahead if Dell has a big runup to 119 the end of the week.