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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: Bobcat who wrote (1100)11/5/1998 12:04:00 PM
From: j rector  Read Replies (2) of 1418
 
Bobcat,

If you examine the historical PE of DSWLF, other than
the last few months, it has generally been in the range
of 7-13. I think a reasonably average is 10. If (and ultimately
when) PE's return to their historical norm, DSWLF will be
well above $20/share. Also, i think (unless they buy alot more equipment soon) they will depreciate alot of their equipment within
the next two years and earnings will rise without sales increases.
A more interesting measure than PE is price / cash flow.
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