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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: jmt who wrote (983)9/14/1998 12:30:00 PM
From: Ron Bower  Read Replies (1) of 1418
 
jmt,

"These are difficult times for investors."

You can say that again!

The impact on Deswell of this announcement.

Presuming that Deswell loses 50% of Mita orders thru the balance of the year, but other sales remain flat, Deswell would still come with earnings around $2.00. While this is a serious situation, the current price is still a bargain at a PE of <5. At 10.00 it's less than the actual value of the company and around 1.2x BV.

This news was already in the price. This is not news that should cause panic selling, but a re-evaluation of the situation.

JMHO,
Ron

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