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Technology Stocks : Deswell Industries (DSWL) -- Ignore unavailable to you. Want to Upgrade?

To: j rector who wrote (1293)	6/13/1999 11:36:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 1418

j, I did research on competitors in HK/China a year ago or so. Most of the plastics companies that I found were supplying their own niche markets (toys, kitchenware, etc.) and weren't in a position to compete with Jetcrown's larger equipment and higher quality operation. I think that Jetcrown is well positioned to supply the HK/China region, but the ECMs and other potential customers in the region are being hurt by the overall competiveness of the economy. We considered the impact of currency devaluations on Jetcrown, but we failed to consider the impact on their customers - Mita, Namtai, VTech, etc. Their businesses, like Kwanasia's, are more labor intensive and vulnerable to the devaluations. (We had thought that Kwanasia would be more stable because of Behringer and InterTel, but this hasn't been the case) Jetcrown can offer competitive pricing, but their customers are being pressured. IMO this is the reason Jetcrown has had to lower margins - to help their customers compete. I've been quiet because I reduced further on the $11.00 runup and am now looking to add ex-dividend. I won't buy to my former amount because I think all economies are in for a rough ride long term. I intend to let cash draw some interest for a while. FWIW, Ron