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Technology Stocks : Deswell Industries (DSWL)
DSWL 3.660-1.2%2:16 PM EST

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To: kolo55 who wrote (723)5/13/1998 5:46:00 PM
From: Ron Bower   of 1418
 
Paul,

Trailing behind you is a large group of analysts just now beginning to recognize the strength of the ECM sector with upgrades on almost every company. However, Deswell continues to be ignored. It will be very interesting to see what happens when they do discover it.

Also interesting - one sector of the Taiwan market that had been ignored but has been showing shown strength recently - plastics. Also starting to recover is non-computer electronics.

What was it - over a year ago that you made your writeup about the future strength of the ECMs?

Deswell continues to sell at a huge discount, but the sector is being recognized and it may not continue much longer. Sector companies showing performance much worse than Deswell are selling at 15-30x earnings and going up due to analysts recommendations. Let's see, Deswell is paying a dividend, growing earnings at 40%, and has a trailing EPS of $2.33....

Thanks again,
Ron
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