Deswell Industries (DSWL) Message Board

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Technology Stocks : Deswell Industries (DSWL)

DSWL 3.695

-3.5%

3:59 PM EST

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To: Ron Bower who wrote (259)	11/26/1997 1:44:00 PM
From: Michael Burry	Read Replies (2) of 1418

Great discussion here. I think the key issue is competition. It appears any well-capitalized would-be competitor could just buy up similar state-of-the-art machines and labor and do the same exact thing. For now, they are earning above average returns because they are the only game in town. I think most in the US know how low-margin and cutthroat this business can become once the market gets a few competitors. The economics of the business are somewhat poor. As far as recent performance, the stock has just had horrible technicals (which represent psychology of course). The value seems compelling, and the company would meet all of my criteria except long-term staying power. I took a small position just in case it can continue hitting on all cylinders for the next 5 years or so. Good Investing, Michael Burry

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