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

To: kolo55 who wrote (301)	12/3/1997 3:37:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 1418

Paul, Trying to get thru the day on caffeine and chocolate until I can sack. Interesting point to keep in mind, but I don't care if the Ws are called or not, have the cash. I just wanted to tie up maximum stock for minimum outlay. (Incidental that it provides maximum gain WHEN the price appreciates - confidence!). After talking with Mr. Lau, I feel the warrants will not be called as it would dilute insiders primary source of income - dividends. The current dividend of .30 gives the insiders $750-800K for the quarter (Behringer also gets a nice check). Why share 10% if it can sit there in reserve. By the expiration, insiders will have exercised enough stock options to offset the percentage loss. We're talking a little over two years to expiration. With the cash they now hold, $4.5M wouldn't mean that much. My objective is to own Deswell and be getting some very nice dividends in 10 years. In your position, I would go stock and take the dividend. Thanks, Ron