However, that issue seems to be resolved, and the current executives are addressing issues with inventory management. He is still cautiously bullish on the stock because the risk has decreased with a Korean government announcement to guarantee loans from foreign countries. Dave Hirons cautioned that it is difficult to gather information on international companies. The Korean business style is cyclical, with many business still conglomerates, where the US business style has moved to specialization. The Korean market is in financial reform right now, and does not adhere to the same ethics as in Asia.
Investments run the risk of currency implosion.
The markets are growing 2 to 3 times faster than in the US, but it is a risky investment. Bill Allen cautioned that some of Poehang's business is based on the Korean domestic auto industry, and with recent turmoil, the domestic purchases may drop. Bill Allen confirmed that TI is a solid company, and that the industry has had a good run in the last few weeks. Bev Thompson discussed Lucent Technologies. Its beta is high, because of volatility caused by institutional traders.