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Technology Stocks : Deswell Industries (DSWL)
DSWL 3.310-2.6%9:34 AM EST

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To: Madharry who wrote (1017)10/11/1998 9:08:00 PM
From: Terrapin  Read Replies (1) of 1418
 
The discussion about a company stock buyback is interesting. I am seeing repurchases announced by many domestic large caps that have been slammed in the past three months. It seems to make sense for them but I'm not sure if it does for DSWLF. They've just completed an expansion, a customer (one that I know of) has warned of decreased orders, and they have set the bar pretty high for the dividend. I suspect this stock will be punished if they are forced to cut the dividend - unless most people are anticipating this and selling stock.

Unless there is a strategic reason for doing so US$ seems better than stock right now. Would a lower shareprice make them susceptible to takeover? Will it prevent them from filling their orders? Who knows what is really happening but I have a feeling that there will be better uses for the US$ than supporting a shareprice in a very sour market.

FWIW - JMHO,
John
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