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Although the currency has appreciated since mid-March, renewed weakness is possible, and the effect of a collapse in the value of the rupiah (not our central forecast) would be to lower the spending power of most Indonesians.
ECONOMIST: Indonesia's robust economy continues to grow
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To get an idea of this potential reduction in value, an increase of just 5% to our base manufacturing cost forecast can reduce our SunPower stock price estimate by almost 15%.
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We believe that Disney has superior pricing power to News Corp and therefore our margin forecast for News Corp stands at a lower value of around 40%.
FORBES: News Corp Could Be A $31 Stock If Margin Improvement Continues
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But for your Uncle Al living in Boca, if he is paying 20% over the value of Treasury bonds at par today to get interest payments of just 1.6%, he is going to get next to nothing in real income after inflation, and he is going to watch the value of his bond plummet once interest rates start rising again, forecast to occur by 2014.
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Ignoring secondary affects (as mentioned below), the independent impact of the community forecast would increase our price estimate by 39%, although still leaving total value below current market price.
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