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

To: Richard Barron who wrote (1325)	9/30/1999 11:08:00 AM
From: Ron Bower	Read Replies (2) \| Respond to of 1418

Richard, Glad to see you are still on board. In this market, Deswell looks very good. Factors I'm watching- Strength of the yen - IMO below 120 gives Deswell a big advantage. Namtai should report earlier than Deswell. Strong earnings from them would (IMO) be an indicator for Deswell Two things I'll be watching for in the Q report- Earnings near last year's Sep Q would be very positive. I doubt if they can make last year's numbers this Q, but am looking for big improvement in the Dec Q. If they reach last year's numbers, $2.00 for the year is not only possible but likely. They mentioned a "major new customer" in the last report. I hope to see a new name on the customer list. If I figured right, Jetcrown can reach $12M revs on former capacity. The machinery they added this past year would substantially increase potential. It looks like Kwanasia and Kwanta will continue to be weak, but I doubt if they will be a drag on earnings. If Deswell reports around $15M revs and earnings near $3M this Q, look for big time gains in the Dec Q with Jetcrown's new equipment in production. If the situation is as I think it is, we'll probably see another 10% dividend increase this year. A good time to buy? The companies net worth (not BV) is more than the current price, they'll generate over $2.00/share operating cash, the dividend is likely to be near $1.00, and all indicators are for growth going forward. But then, this is a very biased opinion. Ron My usual brief response -g-