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

To: kolo55 who wrote (338)	12/22/1997 12:57:00 PM
From: Ron Bower	Respond to of 1418

Paul, Agree on most of what you said, but would add ASEAN and Japan to your list of countries with big problems (at least from what I'm reading). Of them all, only China and Taiwan seem to be in a position to maintain stability and continue current growth trends. China has some banking problems, but they are curable. At least the politicians there are willing to make the moves necessary to keep things balanced. Most current info is that they will resist any devaluation of the Yuan and this should actually help the other countries stabilize their currency. Deswell - Looking back, most of the Deswell purchased this year was above 20 and the warrants above 5.50. With the Asian problems and the price falloff, a logical candidate for tax losses. I wish I could sell to use against my gains but wouldn't want to wait 30 days to buy back. I also believe the same applies to Namtai - most of the shares were purchased above 20 and a person could sell off part of the position for a loss and keep the balance. It would have worked out better if the rights hadn't hit the accounts until after year end close. I thought you were playing things just right and, as near as I can see, you have done well this year in spite of recent losses. When the news about the HK market falloff hit, I knew we were going to take a hit and thought about selling my Deswell that morning. After a couple of hours, I decided that it wouldn't be a major problem and to just ride it out. I didn't realize that it would be followed by the ASEAN, Japan, and South Korean problems. HongKong has pretty well stabilized and, had it not been for the other factors, we would be in fine shape. Next time I will give more credence to gut feelings. It's hard for me to realize that stocks aren't being bought and sold based on analysis of the individual companies and I get burnt by market reactions. However, this has also saved me from owning some bad, but highly recommended stocks. Except for Deswell, the other stocks I owned when the market fell have changed little. We'll just have to see what the new year brings. For what it's worth, Ron