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Technology Stocks : Deswell Industries (DSWL)
DSWL 3.690-0.4%Nov 26 3:50 PM EST

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To: Thomas Frank who wrote (182)10/10/1997 9:52:00 AM
From: Ron Bower   of 1418
 
Thomas,

Just guesswork on my part, but I think we're seeing the 125K shares of the insiders hitting the market and it appears their bottom price was 22.00. Shares sold below 22 were panic sellers that saw the price drop and bailed because they didn't know about the insider shares. In the past, each sell off by insiders has been a buying opportunity followed by a great earnings report.

More conjecture - I believe the insiders are very conscious of US investors being nervous about investing in the Hongkong/China businesses and will do nothing to make them more nervous. Any indication that they are playing games would hurt them, so they sell the shares before the good report comes out and make no sales before or after a bad report. It's just like the NTAIF stock and warrant issue - only to stockholders and they're giving those stockholders a chance to see the next earnings report before they make the decision on buying. What could be more fair? To me, they seem far more responsive to stockholders than most US companies.

Just my 2 cents,
Ron
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