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Technology Stocks : Deswell Industries (DSWL)
DSWL 3.630-0.8%Nov 28 9:30 AM EST

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To: James R. who wrote (670)4/17/1998 9:26:00 AM
From: Ron Bower  Read Replies (1) of 1418
 
James,

Welcome back. Afraid we'd lost you.

One of the things I like the most about Deswell is the compensation to management. I don't know what the current amount is, but the 20F for '97 shows less than $2M in salaries for the top 9 management. For a company of this size, that's extremely low. Their main compensation is stock options and dividends. The 3 top people, Lau, Li, & Leung received almost $2M in untaxed dividends. By the same token, stockholders were paid the same dividend.

The company tax rates are very low due to the special provisions Deswell is eligible to receive, lower than the personal tax rates. I'm less concerned about changes in the corporate taxes as new taxes on dividends.

I find nothing concerning capital gains taxes. Wouldn't this be a factor on the stock options they've been buying/selling.

Ron
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