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Technology Stocks : Deswell Industries (DSWL)
DSWL 3.714+0.4%Nov 21 3:31 PM EST

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To: Ron Bower who wrote (623)4/5/1998 11:31:00 PM
From: thomas reifenheiser  Read Replies (1) of 1418
 
Ron,

Thanks for the reply. I owned the warrants twice in 1997.

I guess I was too scared to buy the common on the way down during the whole Asian meltdown as I was busy getting burned in some other stocks.

The one negative I see for the company among many positives is that it has only five or so substantial customers who make up the majority of their business. Therefore if one of them mismanages their inventory channel, does poorly business-wise, or simply decides to go elsewhere DSWLF could lose a quick 15% of revenues. That's why I was asking how these guys are doing, as this will be a good indicator of future business for DSWLF,

IMO, the lack of analyst coverage and therefore forward estimates and tiny float are holding the stock down. The fundamentals look good however.

Thanks again,
Tom
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