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Technology Stocks : Deswell Industries (DSWL)
DSWL 3.930-3.2%11:27 AM EST

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To: David Seltzer who wrote (293)12/7/1997 11:41:00 PM
From: Ron Bower   of 1418
 
All,

Just reading a report on Reuters and thought I'd pass it along.

Apparently the PRC agency controlling the various companies that are in the process of being privatized made a major decision in September that can effect Deswell. The crux of the decision is that the PRC will put extra support behind their largest companies (the Fortunate 500). The plans are to make them even larger thru mergers, give them more favorable bank loans, fewer restrictions, etc.

They plan to bail out of the smaller companies and let them sink or swim as they can. The projections are that many of these companies lack the ability to operate without State support and will fail. Their only real salvation might be foreign investment or acquisition by other, more successful companies.

I visualize many small, undercapitalized companies without management expertise looking for both monies and guidance. Reading the article, I immediately thought of a company that has an excellent operational ability and financial expertise, with a track record of investing in two small companies with excellent results?

Put this with the financial problems of some Japanese and South Korean companies that have invested in China. The opportunities seem endless.

For what it's worth,
Ron
David - Mr. Koo paying compounded interest on a margin account against the risk of stagnant prices?
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