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Strategies & Market Trends : WEBS MALAYSIA (AMEX:EWM) -- Ignore unavailable to you. Want to Upgrade?

To: peter michaelson who wrote (8)	10/16/1998 11:08:00 AM
From: Rational	Read Replies (1) \| Respond to of 33

Peter: Potential reasons for EWM trading lower (in my view) are: 1. Inertia; it was trading at a small discount when the controls were introduced. 2. WEBS is making many scary press releases on their ringgit value estimates. Only the God may know how WEBS or anyone advising them comes up with 5.07 ringgit per US$, when the US$ is falling off the cliff against the SE Asian currencies and yen, and the Malaysian central bank has been asked if they would strengthen the ringgit. 3. Investors are generally nervous these days and so they tend to believe that there must be a reason for EWM to trade low. Maybe there is a reason that I cannot figure out. 4. WEBS does not want to keep the technical status of EWM as an open-ended fund, while letting it trade as a closed-end fund. Major institutions owned little of EWM until Sept 1, not as much as most closed-end funds are held. Are the scaring tactics in (3) related to the possibility that these institutions' may want to accumulate? Rational Note: Crown Books price has collapsed. Will it rebound? It seems difficult to guess.