CEDC Currency Rates

Hey Nate,

I’ve tabled this one, cause I have no idea about how the currency exchange rates will impact the company. Here’s the Q2 transcript: http://seekingalpha.com/article/89211-central-european-distribution-corporation-q2-2008-earnings-call-transcript

A few highlights I just found:

“we continue to see in Poland and in Russia, of course with the higher GDP growth of Russia, certainly trade-up opportunities are higher that also we are seeing coming through with the pricing of value over volume which we get to a little bit later, which certainly be the aspect of bode well for a strong currency.”

Alas, you’re question: “The zloty has continued to appreciate around 5% of the second quarter, and another 2% so far year quarter to-date this third quarter. The Rubles are relatively flat this quarter, third quarter, and maybe only about a 1% appreciation in the second quarter, but relatively up flat to the dollar and the euro.”

James Archbold is the man with the answer to this question.

http://people.forbes.com/profile/james-archbold/17140

Contact:
Jim Archbold,
Investor Relations Officer
Central European Distribution Corporation
610-660-7817

I haven’t called CEDC yet, it sounds like you know more about their currency situation than I do. I look for consistent companies with growth potential on the cheap. CEDC ridiculously fits my model right now. Buffett and Lynch love cold calling. My advice is you give it a try. Let me know what you find out.

Glen

From: Nate Tabak Sent: Sunday, October 26, 2008 2:43 AM To: gbradfo Subject: CEDC

Hey Glen,

How much of an effect are the collapses of the zloty/forint/ruble going to have on CEDC's fundamentals and future earnings? I've been buying into the stock's weakness, partially with the hope that the currency situation could be a boon for company since it will be able to make Eastern European investments and acquisitions at a steep discount using its USD reserves. Furthermore, do you have any idea to what extent CEDC hedged against currency declines?

Thanks, Nate Tabak