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

To: Ron Bower who wrote (274)	11/26/1997 5:16:00 PM
From: David Seltzer	Read Replies (2) \| Respond to of 1418

Ron I think Asian markets will be in turmoil for the next 3 to 6 months. This presents both problems and opportunities.The short term looks bearish to neutral while the long term looks okay.In other words,I would consider buying Asian stocks when things settle down because stock prices will probably head lower. Lets get specific about Deswell. 1.I think revenues will decrease or stay the same while the gross margins will stay the same(comparing to 3rd qtr 1997). 2.The balance sheet comparisons puzzle me.Why compare to the 1st qtr of 1997? 3.The subcontacting for a customer has been converted to OEM sales with lower margins.What are the details? 4.If Ntaif's sales fall in the next 2 qtrs what does that mean to Dswlf? I predict that Ntaif's sales will decrease in the absence of 1 or more acquisitions. 5.Sales expense has doubled this year.Is this expense going to increase,decrease or stay the same? I suggest that you call Richard Lau,and try and get some more information. Happy Holiday David