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FiREapps CEO Wolfgang Koester on how investors can protect their portfolio from a weaker Japanese yen.
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-- let me ask this question do you think that Ayman -- does that work here the yen continues to move lower.
Based on the idea the Bank of Japan is -- flood the market with money and use the proceeds to make large scale asset purchases but by minister Taro so.
Took exception to that notion he says Japan is not trying.
To -- the end looks like about right so -- -- to protect football air right now joining me now is hoping has turned his fire -- chairman and CEO.
Boy it fits in and he says that because from from the outside looking -- a weaker yen just seems to be a foregone conclusion here.
That I -- actually agree I think that.
The prime minister has already said so I'm quite frankly they actually already put out a target at 100.
Against the yen and we're starting -- move towards that.
The Japanese already in the ninety's were known to be very.
Manipulative and able to really move there again the way they want to -- the biggest indicator to me on that was.
While I'm not in the business of actually looking at whether currency goes one way or the other is to really say.
Look at hit the market in least liquid times and they did so right between Christmas and New Year's unfortunately that -- Companies up -- in the United States to.
Getting impacted you saw the automotive CEO's -- almost -- prior to the inauguration.
With the President Obama -- going in this and we got a problem here a big problem we can't let the dollar yen go to 100.
I don't know that's a citizen this lawyer calling it yen weak because any amount of American companies are and many of these companies in our portfolio as you mentioned the auto makers.
That are going to be affected by this weakening and by the monetary moves that we're -- out of the Japanese can -- names of companies that are on your radar that you think you're gonna be.
Constituent concern and we should be concerned about.
Yeah I Megan actually when I came -- -- -- agency is I think with actually list of about nine pages of them but all -- a couple of the minutes are right.
I won't read and take a promise but you know start looking at companies -- you know you saw let me just take a step back.
You saw McDonald's didn't significantly hit on this that was pretty obvious and correct but frankly some of the analysts like -- Jane saw that prior to happening and actually went to neutral from buy a on when they saw -- starting to happen.
Apple wasn't known as much to be doing it and they didn't really announce it but if you look at Apple's revenues.
He's also and 60% of this 61% of their revenues come from a brought.
I'm expecting roughly 20% of that comes out of Japan.
When 20% of that revenues is actually.
Knowledge -- up as 11% less that's pretty significant you saw that in there.
But now looking forward to that you look at companies like -- Corning.
They will be impacted by it or you look at a Harley will significant impact.
And then you look at even companies that are smaller companies let's not just for the big -- -- everybody knows.
But it Entegris 750 million dollar revenue companies.
They talked in prior quarters about the yen some of these companies actually come out and said.
We are hopeful that the yen doesn't weaken -- -- that hope did not come true.
We -- showing our viewers Corning you mentioned that but Harley-Davidson.
Ralph Lauren I would think Ralph Lauren in the retail sector is is the tipping point of what can be major issues.
Because so many of those ridiculous hiring companies depend.
On Japanese relative.
And -- you're absolutely correct and you you're Ralph floor another one where.
Japan will be impacting them and there won't be all positive you -- look at the top line you're gonna see some impacts there.
They had some offsetting on some other currencies but it isn't get a big enough.
The major currency that in previous quarters have been very helpful to them are not going to be very helpful for them this.
Water doesn't just hit them when it comes a Japanese shoppers to its its US shoppers as well that's another night another segment -- talk about the company's other question.
-- but most of the companies that are actually prepared that can kind of weathered this storm.
Of the yen who do you like Adenauer who do you think is most prepared.
That's prepare.
Well I mean you look at actually -- you're talking about the you know that you're going to talk about Yahoo!.
-- company's very well prepared they've done risk management properly for years I know they got other things that they're thinking about and currency may not be the number one.
But it when it comes to financial risk management's solid company.
-- companies have talked about before in that same sector like a Google doing a great job but this thing and make sense or another area completely different.
Sector -- are you looking at the -- us we've seen.
Fighters in the mark's doing a great -- so this is something that you know technology can hope these companies -- here and not have an impact at the bottom line.
Too many of these companies are still doing.
Not what they need to be doing in this area.
You know and we're looking at those companies as well and I think the I think that the breath that the mixture of these companies -- also a -- -- about how currency can affect.
Company effect a shareholder.
-- courted him on the show you're talking about currency volatility billions of dollars in losses do you still kind of think the same with you did one month ago.
I absolutely -- and the only difference is what currency is next these companies that are not managing it to be basically currency Gnostic.
I'm gonna be sitting here in three months and we're gonna talk about maybe the -- but NATO had talked about Brazilian -- -- and what companies that will be impacted and this quite frankly this list of companies.
Will be likely a different lists all but it's still there's -- -- be a sector of companies that really not for me industry sector but from a from a risk management sector companies that are not -- well.
But the good news is there's more and more companies doing it well and hopefully that list that I come on what we'll continue to -- Walking back to all our viewers currencies are fun and it has been -- very interesting guy.
I -- earlier this this is a fire at Genesee yet thank -- -- game we'll see you soon thanks Sheryl and I.
