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

To: Ron Bower who wrote (275)	11/25/1997 12:28:00 AM
From: Richard Barron	Read Replies (1) \| Respond to of 1418

Ron, Fascinating reading!!! You sure do your homework!!! Then again, if I had most of my portfolio in one or two positions, I'd probably do the same. I am impressed. I agree with you that the companies sitting with cash will come out stronger. They have ample and can also raise more whenever they want by calling the warrants. I also think they have some pretty expensive machinery that cost close to a million dollars that generates business that most smaller competitors can't compete with. I remember the press release on this a year ago and based on the revenue growth accelerating, this machinery may be some of the cause of the growth. If so, I imagine it doesn't have a lot of competition. The only big downside is if they are material intensive and have to pay much higher prices for raw materials due to devaluation of their currency. Time will show how much this effects them. Even if they come in flat to down 20% for 2 or 3 quarters before reboundings, this would be a great value investment under $20.00. If it's worse than that, it will be hard to say. I don't get into the details as much, I just want the #'s tilted in my favor like a casino that only pays out 90% of what it takes in. I just have a normal size position right now, but will build it up if the technicals turn positive. Until then, I hope they keep performing, so it will be even more of a bargain when I do jump in deep again. Richard