# 💹 The effect of Currency Exposure on Shareholders Equity 💹#

When we invest, one important aspect to consider is our portfolio exposure to currencies. It is not important where the company is trading, but where and how is making business ‼️

Keypoints 🗝️:

- In which currency is the company getting paid?

- In which currency is the company paying their costs?

- Are they hedging?

- In which currency is their cash, investments & deposits?
I specially look at them in companies with business in LATAM, Africa or Asia. 🌎

One of the checks you make is looking at the "Other comprehensive income".

I remember that I was very confused the first time I look into a company from a developing country (Pakistan). 🇵🇰
It was a software company (Really good ones in Pakistan) and they seemed to be doing pretty well (Positive Income) but the equity was just decreasing. WTF?

Reason: They were very exposed to Pakistan Rupee!
⬇️Here you go ⬇️

They were collecting most of their cash in Ruppes...
In most cases it is not a big deal, specially if we invest within Europe or North America or companies that hedge.

But as an advice please check "Other comprehensive income" or at least check if Income corresponds to the increase on Shareholders Equity
And careful with net cash!
Anyways, I am a curious person and for my investments I try to monitor my exposure to currencies. Specially since I buy worldwide and lately most in Asia

For example, for Winox Holdings I have created a coefficient model that forecast the Annual Gain/Loss due to currency effect
which is part of the Other comprehensive income.

For H1 2020 they report a loss of 13.9MHKD. My model estimates a gain of around 35MHKD for 2020 FY. so basically almost 50MHKD of gains which is 6% of the company market share.

Lets see in a month if I was right or not!
Anyways the exposure in Winox is pretty low. It doesnt matter much on the valuation but there are some others that I am following that it is mostly 20-25% of market cap. I am still doing some research on this side in microcaps because the share price doesnt seem to reflect it🤫🤫
You have the Winox investment thesis in this thread if you like to read it. One of my biggest positions by the way

Hope you like the currency thread/advice, cheers! 🔥🔥

https://t.co/iKWBlzdrxM

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Quick Thread on #Altcoins/ #Altseason

Step 1: $BTC has a huge correction. Every range starts with either a pump (or dump) and then follows with a dump (or pump). In this case, #Bitcoin pumped and is now pulling back. This is


Step 2: $BTC ranges big once it finds a bottom. This will allow it to reaccumulate for a big summer run in 2021. This is HEALTHY IMO.


Step 3: Once $BTC finds a bottom and starts to grind up again, I expect $ALTS to do very very well in both alt/usd and alt/btc pairs. ALTSZN is almost always characterized by strong alt/btc pairs moving- I've already accumulated most and have done my final buying today and more.

$BTC.D typically has a very nice time during this time of the year. I was off on December prediction bc I thought $BTC was going to pull back by then but oh well! #Altcoins will start their pumping time VERY soon now.


More information on what #Altseason is and $ALTS market
I'm sure someone else has explained this, but it is just so cool and I want to explain how this works.


So Curve is awesome for swaps between similar assets, right? The fact that they trade very close to each other is a key part about how Curve works, using it's custom swap invariant function.

That's step 1

Step 2 is that Synthetix is awesome for creating "synthetic assets" (aka synths) which are assets that trade like other assets, that are backed by another, entirely different asset. Basically, a plastic banana that I can buy and sell like a real banana.

Synthetix has a feature that lets you swap between any two synths with zero slippage and a flat fee. That's because it is simply converting the sythentic asset into another synthetic asset, the backing for the synth doesn't change it just uses a different price oracle now.

This is important. Absolutely no slippage, at any size

Swap $1m sUSD for $1m sBTC? flat 0.3% fee

Swap $10m sUSD for $10m sBTC? flat 0.3% fee

swap $100m sUSD for $100m sBTC? Well, there isn't that many synths in Curve, yet but you get the point. The only limit is the pool depth

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The Swastik is a geometrical figure and an ancient religious icon. Swastik has been Sanatan Dharma’s symbol of auspiciousness – mangalya since time immemorial.


The name swastika comes from Sanskrit (Devanagari: स्वस्तिक, pronounced: swastik) &denotes “conducive to wellbeing or auspicious”.
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The Swastika represents the living creation in the whole Cosmos.


Hindu astronomers divide the ecliptic circle of cosmos in 27 divisions called
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