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

To: Ron Bower who wrote (259)	11/21/1997 10:48:00 AM
From: Steven Yang	Read Replies (1) \| Respond to of 1418

Ron, Per DSWLF's annual report, the sale of its plastic modeling busiess is in HK dollar, and the sale of its electronic assembly business is in US dollar. If you account for the minority interest in the electronic assembly business, 75% is roughly the exposure of DSWLF's sale in HK dollar. Steven ps: I think that the chance of a devaluation in HK dollar is quite small.

To: Ron Bower who wrote (259)	11/26/1997 1:44:00 PM
From: Michael Burry	Read Replies (2) \| Respond to of 1418

Great discussion here. I think the key issue is competition. It appears any well-capitalized would-be competitor could just buy up similar state-of-the-art machines and labor and do the same exact thing. For now, they are earning above average returns because they are the only game in town. I think most in the US know how low-margin and cutthroat this business can become once the market gets a few competitors. The economics of the business are somewhat poor. As far as recent performance, the stock has just had horrible technicals (which represent psychology of course). The value seems compelling, and the company would meet all of my criteria except long-term staying power. I took a small position just in case it can continue hitting on all cylinders for the next 5 years or so. Good Investing, Michael Burry