Thread,
Over the last few months Deswell's price has been about as volatile as any stock on the market. Today it is selling at the lowest price in over two years. Why?
None of the past volatility has been related to the company activities. Management has been and continues to do exactly what investors want them to do, run the company in the best interests of the stockholders and to grow earnings and net worth of the company. I have been following the company closely for over two years. From the date of the IPO, they have steadily increased earnings, liquidity, shareholder value, and dividends at an exceptional rate. Even with the Asia crisis, they have continued to perform by adding a major new customer. In all probablity they will continue to grow in the coming year and years.
The recent market action is not due to the company. In fact, I imagine the company is wondering what's going on just as we are. They cannot control the market and the idiocy of the market players, nor is it their responsibility to do so. They have that one responsibility - to run the company as well and efficiently as they possibly can.
I bought Deswell stock because they are a good company. On paper, I have suffered what I consider major losses, but it wasn't due to anything the company has done. They have performed just as I had hoped they would when I invested in the company.
I have added some but am waiting to see signs of a reversal before I add more. I want to see if there's someone out there that has to sell me some for $5.00. I am jealous of everyone that has been able to enter at these prices, but ...
FWIW,
Ron
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