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

To: Chris Nevil who wrote (1371)	3/4/2000 4:22:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 1418

Chris, My post having had something to do with the price drop gives me credit I doubt justified. If I'm influencing the price, I'm doing a lousy job of it. I tried to present an honest picture based on the information I received. If my post caused a drop in the price, I gave the wrong impression of Deswell's future. I admit to being shocked by the report. Everything I had indicated numbers above the 2nd Q. I projected .71, but thought they would come in around .75. I was also surprised that Mr. Lau wasn't more optimistic in the statements he made in report as he had been very optimistic in the 2nd Q. My communication with the company gave me a different impression. The company doesn't do hype. Mr. Lau once said to me, "We'll do the best we can for the shareholders and let the market determine the value." They are now doing what they feel will provide the best results 'long term' - making strategic investments in the company's future. I went through Jetcrown and Kwanta - expect major growth from expansion currently underway. Kwanasia is a different story. IMO-They made major expansion for a customer that later tried to muscle prices. They could ony keep the business by sacrificing quality. They are now getting new customers, but felt development of their own product line would give them a core production base. This has resulted in a line of security and telecom products. I now know the first of these products has been introduced at a CES show and some telecom products exhibitions. As I understand it, it's advanced conference call equipment combining Kwanasia's expertise in audio and telecom. I'm told these units were well received at the shows. Other products will soon be introduced. I questioned the marketing strategy and found that Deswell has much more exposure that I thought. They are in regular contact and negotiations with some major companies in the US, Japan, and Europe. Management is enthusiastic about the prospects for all three companies. When K&K start adding to Jetcrown's earnings, we'll see a major increase in Deswell's overall numbers. JMHO, Ron