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

To: Steven Yang who wrote (256)	11/19/1997 5:04:00 PM
From: j rector	Read Replies (1) \| Respond to of 1418

I think that any country that undergoes significant inflation like China must face up to currency devaluation at some point. I believe that the only way the Yuan can go for the next five years relative to the dollar is down.

To: Steven Yang who wrote (256)	11/19/1997 11:08:00 PM
From: Ron Bower	Read Replies (2) \| Respond to of 1418

Steven, I've been looking and can't find where you come up with '75% of sales in $HK'. My understanding is that the largest customer at this time is Inter-Tel - a US company (growing fast) with other sales diversified, but all based on $US. Deviations in the YUAN would have an effect, but minimal. Deswell is not a labor intensive company, relying more on high tech, high capacity machinery for production. It bothers me that they are getting into labor intensive board assembly but I believe they will make it work as it complements the other operations. They can produce a full package of plastic cases, metal stamping, circuit board production, and board assembly with profits at all stages. I think they preferred to stay out of assembly, but it was necessary for sales as many customers wanted to buy complete assemblies. Thanx, Ron