|
PureBytes Links
Trading Reference Links
|
John Chamberlin wrote:
>
> I have a thought pertaining to the Asia crisis.
>
> The media has been focusing on this problem as it
> relates to corporate earnings, reduced sales in asia
> etc.
>
> I lived in Japan for 11 years and have traveled to
> most asian countries many times. We don't sell
> anything in asia! All of the products are asian.
>
> Heres my thought. Although we don't sell anything in
> asia we do mfg most things in asia.
>
> Can it not be said, therefore, that corp earnings
> will be significantly higher for corp that mfg in
> asia due to the weakening foriegn currency and
> strengthening dollar.
>
> i.e. Nike mfg cost for shoes has been reduced by
> nearly 50% due to the weak asian currencies. The
> same can be said about all of the electronic mfgs.
>
> I understand in exporting terms our products will
> cost more in asia and therefore be less desireable
> but as I hae already stated we (americans) don't sell
> anything in asia.
>
> Conclusion: Falling/failing currencies in asia may
> be bad for asians and bad for future exports but more
> importantly, great for US companies who mfg in asia.
>
> John
>
> ===
> john@xxxxxxxxxxxxxx
>
> One friend in a lifetime is much; two are many; three
> are hardly possible.
> --Henry Adams
>
> _________________________________________________________
> DO YOU YAHOO!?
> Get your free @yahoo.com address at http://mail.yahoo.com
John
I agree with you. I live in Europe, and a big piece of news here was
Seagate abandoning plans to build a plant in Ireland, and insteas
expanding operations in, I think, Singapore.
Not only will it be cheaper to buy stuff in Asia (NKE) and to make stuff
there (SEG) but also to buy SE Asian companies. This will benefit those
companies with the resources and the nerve to take advantage of this
opportunity, and hurt the timid.
An example of a company I like is CREAF in Singapore, which has a lot of
money (US$) in the bamk and has been making smart acquisitions.
Look for labor intensive businesses and exporters.
DanG
|