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

To: Richard Barron who wrote (310)	12/9/1997 12:40:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 1418

Richard, I've been considering your comments about the company buying back the warrants and agree with you. One of their concerns seems to be keeping Insider majority. I believe this also benefits shareholders. The current management has been excellent, their compensation is stock options, stock value appreciation, and dividends. However, they barely own a majority, making a stock issue for an acquisition undesirable. If they would buy back warrants over a period of time, the shares could be issued. By buying back the warrants, they lower dilution and increase shareholder value = higher share price. They would lose the $5.2M available from calling the warrants, but this amount becomes insignificant as the company grows. For each $1.00 paid out for warrants, they likely would make available far more purchasing power in share value. I would also suggest that they declare a stock split after buying the warrants to increase the amount of shares available for acquisition. I'm writing to Mr. Lau to thank him for talking with me and may try to make this suggestion. Couldn't resist. Added more yesterday to further lower my basis. Now need prices up to about 18.50/5.50 to be in the black. For what it's worth, Ron