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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: M. Frank Greiffenstein who wrote (144)	10/11/1998 8:32:00 PM
From: RockyBalboa	Read Replies (2) \| Respond to of 283

Well, in the hyperinflation, the bondholder or people who stick to cash savings are strapped of inflation adjusted-value, as some "fixed" interest payment never copes with inflation then. This happened mostly in history, ie after wars when currency was devalued and restated all over Europe. I know that almost everything in russia is imported is factored in Deutschmark or US Dollar, especially technology. But, the value inhaerent in VIP may be not cash assets but technology previosly bought at better prices generating higher nominal returns now. The other costs may rise in line with the accelerated rouble inflation. And much depends on the outside value of the rouble, after the 60% drop against the USD. Besides that, if they were smart, they changed their cash into dollars, and pay fixed interest on rouble debt. Definitely pure speculation in VIP, as little is known about their balance and earnings right now. C.