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

To: David Seltzer who wrote (283)	11/28/1997 1:35:00 PM
From: Ron Bower	Read Replies (2) \| Respond to of 1418

David, Reflecting further on your comments: I think I will try to call the company Monday and see if they will tell me the percentage of sales to largest customers. If I'm successful, any other questions that I should ask? I'm hoping that the NTAIF sales have decreased and that Inter-Tel has substantially increased. My conjecture is that the OEM is Inter-Tel. I can't see it being NTAIF as they are heavy in assembly already. Also, Deswell had a major increase in sales revs in a Q where NTAIF fell. Inter-Tel is growing fast and would account for the rev increase. Sales expenses had R&D included and most of the increase was attributed to the increase of R&D due to the assembly work. This would be higher due to initial startup then flatten out and we should see it decline as a percentage of revs. I read your post on the NTAIF thread and agree that there will be down pressures on the price from more insider sales to raise cash and until they come forth with their expansion plans. I am hoping that all of the Insider and NTAIF shares of Deswell have hit the market. With the current weakness, Deswell insiders won't further depress price by selling more shares. If they do, I believe it would be an indicator to sell where I have thought it a buy indicator before. I converted more stock to warrants this morning. At $4.25 versus $17.125, I consider them a much better buy. Still showing large losses from the averaging down, but would take very little up movement in warrants to put me in black. For what it's worth, Ron

To: David Seltzer who wrote (283)	12/1/1997 10:42:00 PM
From: Ron Bower	Read Replies (3) \| Respond to of 1418

David, You @#%&*!! "I suggest that you call Richard Lau ..." Sounds easy! I won't go into it, but it took me four phone calls to find out he was in China and won't be back until tommorrow afternoon. It was almost funny as I look back on it. I got a wrong number and talked a long time with someone that barely spoke english before I finally figured out that he wasn't RICHARD Lau and I didn't have Deswell Industries. Another life experience - and whopper of a phone bill. Questions I have: Did the analyst talk with him before he lowered the rating? Why would the analyst lower the rating? Ask him to make a comment on current operations? Have they added any new equipment this quarter? Is there good order backlog? How much? Is order visibility good? New customers? Any pressure from competitors? Namtai has been raising monies. Do you have any idea why and could it be that they plan to compete? Merger talks with them or anyone else? Do you have any acquisition thoughts of additional facilities in China? Has Namtai sold all of their shares in Deswell? There's concern about the insider sales, please comment? There's concern over the $HK being devalued - comments? Where does he see Deswell Industries in five years? Anything I've missed? Converted more stock to warrants (NOT the 10,000). At $4.25 = $17.55 on conversion. I'll sacrifice the dividend to hold more shares at less money. I just can't understand why someone would sell at that price. Will post after (if) I talk with Mr. Lau. Ron