Deswell Industries (DSWL) Message Board

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Technology Stocks : Deswell Industries (DSWL)

DSWL 3.410

+3.6%

Nov 5 3:58 PM EST

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To: jmt who wrote (1163)	1/20/1999 11:15:00 AM
From: kolo55	Read Replies (2) of 1418

They are using cash to buy back shares. If they can see a visible growth path for their business, then using excess cash to buy back shares is a conservative strategy. I agree that if an attractive business is available, then they should look at it. I originally thought they should consider getting into the printed circuit board manufacturing business (making bare boards). That biz is cyclical, and right now is suffering from poor margins. But over time, that business will grow substantially in China. The best way to do this, would be to JV with one of the large board manufacturers from Taiwan. That way Deswell would have access to the technology and know-how of a major player, and Deswell could contribute their in-country know-how and some cash to the JV. This business would go one step further toward giving Deswell the capability to making consumer electronic products, from the board, through assembly, to the metal parts and plastic casing. This is quite similar to Flextronics manufacturing campus in China. Paul

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