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Technology Stocks : Vimpel Comm (VIP) ADR's of the Russian Cellular Phone Co. -- Ignore unavailable to you. Want to Upgrade?


To: RockyBalboa who wrote (143)10/11/1998 8:16:00 PM
From: M. Frank Greiffenstein  Read Replies (1) | Respond to of 283
 
Some benefits, more negatives...

Chrisitian, VIP has to pay for its modern equipment in US$$. If inflation soars, the ruble is wortless and VIP may have to default.

Yes, VIP can increase prices. Quick enough to keep up with rate of inflation? I doubt it.

Not sure what you mean "stick to assets." Cash assets become worthelss in inflation. If you think VIP can maintain profit margins in a hyperinflationary environment, you may want to consider bonds. Besides, who would care about profit margins if earnings sank down the toilet?

DocStone