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Technology Stocks : Deswell Industries (DSWL)
DSWL 3.400-0.3%Nov 6 3:58 PM EST

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To: Richard Barron who wrote (1026)10/12/1998 11:30:00 AM
From: Ron Bower  Read Replies (1) of 1418
 
Richard,

I feel you made an excellent argument for a buyback if they will not be showing sales growth. However, I am more optimistic about Deswell increasing sales (and earnings) and feel they may need the cash.

With $30M net liquidity and $22M cash, they would seem to have a surplus, but they are 'open' to the possibilty of an acquisition. Should they find the 'right' buy, the cash on hand could be quickly cut in half leaving them at a decent, but not comfortable level of working cash to fund expanded operations.

FWIW,
Ron
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