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Technology Stocks : Deswell Industries (DSWL)
DSWL 3.390-0.3%Nov 7 9:30 AM EST

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To: peter michaelson who wrote (914)8/25/1998 2:36:00 PM
From: jmt  Read Replies (1) of 1418
 
Peter:

I am not aware of restrictions concerning Chinese companies acquiring outside of China, but my suggestion is an acqusition in Southeast Asia. If Deswell is holding US (or yuan prior to devaluation), this would achieve the following:

- Companies are on sale as a result of currency devaluations

- Geographic diversification would allow Deswell to shift production to economically advantaged areas as business conditions change.

What is the advantage of holding cash? I have not invested in Deswell as a conduit to a money market fund. I have implicitly asked Deswell as a shareholder to invest the cash in positive NPV projects, and entrusted management to do so. IMO If they cannot in this market find positive NPV projects,the cash should be returned to shareholders through a dividend.

jmt
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