j,
Stock buyback -
You forget one thing. The management of this company has paid very little attention to the stock price. How many CEO's would ask a caller "what's the stock selling at now"? Most would know not only the price, but the volume and other information.
IMO -With current global economic situation, the company is much better off keeping the cash (paying the dividends) than using it to buy back stock. I am sure it isn't going to happen, but a prolonged recession could require cash. If they go as I believe they will, they will need a good cash balance for expansion or acquisition.
Suppose they do start buying back shares. At what price would you sell? I want at least $30.00 for mine. With the small liquidity, any buyer of 50,000 shares would substantially increase the price. If the company buys, the EPS rises, the BV rises, etc. They couldn't get the shares anywhere near the current level.
Not to go into the global, Asian, HK/China, US, etc, situation, but the value of Deswell is increasing in every daily news item.
For you to consider. China is contemplating decreasing the amount of $US (now 60%) and increasing the amount of $Euro and yen in their foreign exchange reserves because they project a major decline in the $US. I think it would be the thing to do, and I think that Deswell should look at diversification of their currency.
JMHO,
Ron |
