Deswell Industries (DSWL) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Deswell Industries (DSWL)

DSWL 3.690

-0.4%

Nov 26 3:50 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ron Bower who wrote (636)	4/10/1998 11:16:00 AM
From: Jethro Bodine	Read Replies (1) of 1418

"Would a small resin plant be a good acquisition with all the plastics extrusion being done in China?" Vic is right on target. To produce resins (from raw material - crude oil) , basically means having a refinery. You're in extremely big capital cost. Far better to shop the markets for best prices. As an aside, I also like Shanghi Petro (SHI) a large producer of resin and other petro products at current prices. Further, I believe I've recently read that Shell and BASF are investing billions in developing additional capacity in southern China. Of course it would be two or three years before this is completed. "If one can save the customer on the initial mold cost, they would be more likely to pay a higher unit price because it removes risk variables. Deswell would be protected by the initial minimum order quantity, but the real benefits would come from reorders." This is exactly how I see it. Making the mold is the big "fixed" cost for the customer. After that variable unit cost go down as volume goes up.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next