Comments on: Stay Away From Global Companies! http://www.investorgeeks.com/articles/2007/10/12/stay-away-from-global-companies/ Learning and sharing investment knowledge. Fri, 29 Aug 2008 23:22:31 +0000 http://wordpress.org/?v=2.0.4 by: Soma. http://www.investorgeeks.com/articles/2007/10/12/stay-away-from-global-companies/#comment-278355 Thu, 28 Feb 2008 15:47:30 +0000 http://www.investorgeeks.com/articles/2007/10/12/stay-away-from-global-companies/#comment-278355 <strong>Soma....</strong> Soma overnight. Generic soma. Soma sun pilates. Pornstar soma. Suicide with soma how many does it take. Soma drug testing.... Soma….

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]]> by: Christian Gross http://www.investorgeeks.com/articles/2007/10/12/stay-away-from-global-companies/#comment-192689 Thu, 08 Nov 2007 06:21:46 +0000 http://www.investorgeeks.com/articles/2007/10/12/stay-away-from-global-companies/#comment-192689 Actually goods have not been less expensive in the US for 20 years. I know because I have been living in Europe for the past 14 years (UK, France, Germany, Austria, Switzerland), and before that lived in Canada and the States. And since 1996 I have been making at least twice a year a trip to the US to attend conferences. Around 2000 the US was very expensive for me. I did my calculations based on 5% of people shifting their shopping habits. That is not that much, but yet look at the bottom line. I also don't feel 5% is that much out of order. Look at what is happening in Canada right now. Canada is the canary in the mine. The border is clogged with people who are running into the US to spend. What you are also forgetting is Switzerland. Until the last week or so the Swissie has been falling lock and stock with the USD. The result is that Germans, and French are buying in Switzerland, not Germany or France. Migros has had an increase of revenue of 35% due to the fact that Swiss are not buying in Eurozone, and Eurozone shopping in Switzerland. Thus American companies will export more to Switzerland, but not receive the profits since those are sales that they might have had in EuroLand. Add on top on how people are shopping on the Internet (eg Amazon), add shopping trips where people really pile on. I am not talking about people not shopping anymore in Euroland. What I am talking about is that a small shift of the shopping population can have huge changes in the bottom line of the companies. Actually goods have not been less expensive in the US for 20 years. I know because I have been living in Europe for the past 14 years (UK, France, Germany, Austria, Switzerland), and before that lived in Canada and the States. And since 1996 I have been making at least twice a year a trip to the US to attend conferences. Around 2000 the US was very expensive for me.

I did my calculations based on 5% of people shifting their shopping habits. That is not that much, but yet look at the bottom line. I also don’t feel 5% is that much out of order. Look at what is happening in Canada right now. Canada is the canary in the mine. The border is clogged with people who are running into the US to spend.

What you are also forgetting is Switzerland. Until the last week or so the Swissie has been falling lock and stock with the USD. The result is that Germans, and French are buying in Switzerland, not Germany or France. Migros has had an increase of revenue of 35% due to the fact that Swiss are not buying in Eurozone, and Eurozone shopping in Switzerland. Thus American companies will export more to Switzerland, but not receive the profits since those are sales that they might have had in EuroLand. Add on top on how people are shopping on the Internet (eg Amazon), add shopping trips where people really pile on.

I am not talking about people not shopping anymore in Euroland. What I am talking about is that a small shift of the shopping population can have huge changes in the bottom line of the companies.

]]> by: CrossProfit http://www.investorgeeks.com/articles/2007/10/12/stay-away-from-global-companies/#comment-192549 Thu, 08 Nov 2007 01:59:19 +0000 http://www.investorgeeks.com/articles/2007/10/12/stay-away-from-global-companies/#comment-192549 The flaw in your thesis is that goods have been less expensive in the U.S. for over twenty years. Still, over 95% of Europeans shop in Europe. It is true that some tourists cover their cost of the airfare by shopping in the U.S. The problem is that most do not bother making the trip and end up shopping for clothing at home. In addition, you are talking about local retail sector. Most U.S. sold apparel is not made in USA and is not what the analysts are talking about. What is made in USA is health care equipment, CAT tractors etc. These items do fetch higher prices in Europe in comparison with U.S. market prices. As for computers, the laptops are problematic as most countries will apply customs duties. Desktops, no-one attempts to put in a suitcase. P&G for example is not affected by your thesis. A few deodorants in a suitcase are negligible in comparison with the container loads consumed daily in Europe. CrossProfit The flaw in your thesis is that goods have been less expensive in the U.S. for over twenty years. Still, over 95% of Europeans shop in Europe.

It is true that some tourists cover their cost of the airfare by shopping in the U.S. The problem is that most do not bother making the trip and end up shopping for clothing at home.

In addition, you are talking about local retail sector. Most U.S. sold apparel is not made in USA and is not what the analysts are talking about. What is made in USA is health care equipment, CAT tractors etc. These items do fetch higher prices in Europe in comparison with U.S. market prices. As for computers, the laptops are problematic as most countries will apply customs duties. Desktops, no-one attempts to put in a suitcase.

P&G for example is not affected by your thesis. A few deodorants in a suitcase are negligible in comparison with the container loads consumed daily in Europe.

CrossProfit

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