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Technology Stocks : Deswell Industries (DSWL)
DSWL 3.630-0.8%Nov 28 9:30 AM EST

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To: P. Ramamoorthy who wrote (502)2/24/1998 10:44:00 AM
From: Ron Bower   of 1418
 
Ram,

IMO - I haven't been looking at Deswell in terms of market price, but as a value stock. It's one of the few stocks in this market that a person can buy at a reasonable price considering good potential long term growth and return on investment.

They are currently selling at 2.5 times BV, less than 2X actual value, have been growing at over 50% a year, paying a very nice dividend, are in a good sector for growth, and (I consider it a plus) have factories in China.

The financial strength of Deswell is obvious and makes the Asian problems beneficial rather than a negative. The current situation in China is more conducive to profits and growth than in any other country in the World with low taxes and incentives for expansion. China has adopted capitalism with a fervor that will will make them a competitor with the US as the economic power of the World. The naysayers that think China will return to communism aren't paying attention to what's going on over there. Similar to those that discounted Japan's growth in the 50's.

Deswell will provide a very nice return if one is patient.

For what it's worth,
Ron
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