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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: kolo55 who wrote (648)4/15/1998 10:28:00 PM
From: Madharry  Read Replies (1) of 1418
 
Thanks for your comments as a novice investor in this business I have brrn getting the impression that it is not that easy to get into this business and steal customers that once deswell gets a customer it is likely to retain that customer as long as the product is produced. Also is it not possible that some of this production will be used by the chinese themselves. Where do you see the competitive threats coming from?

To me it seems that Deswell has improbable margins that are normally sustainable only by monopolies with patent protection or brand loyalty. COuld this be the case with Deswell?

However given the company's cash, and sales growth how much downside could there be?
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