Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ron Bower who wrote (348)	12/29/1997 1:50:00 PM
From: Brooks Jackson	Respond to of 1418

Ron: I agree with much of what you say, and for those and other reasons I have taken a long position in DSWLF. However, I think all of us must be alert to the fact that this company's executives are simply not, as a practical matter, subject to the same legal processes as U.S.-based companies. The incentive to cook the books is simple -- to raise U.S. dollars from people like us. And I do not share your optimism that the PRC "would not tolerate fraud." On the contrary, I think a major risk of investing in this company is that PRC officials would -- in a heartbeat -- screw U.S. capitalist pigs like us if and when it suited their purpose. I wouldn't be surprised to see some official -- or his kid -- trying to horn in on Deswell's profits. We all just have to accept that the Asian business culture does not adhere to the same ideas of fair play that underlie U.S. securities laws. For that reason, I count Deswell one of my riskier investments.

To: Ron Bower who wrote (348)	12/29/1997 4:26:00 PM
From: Count de Monie	Read Replies (2) \| Respond to of 1418

Hi Ron, Deswell has a new risk you might not have considered. China will not devaluate its currency. The currency of its neighbors have devaluated up to 50% in some cases. This means Deswell's products will be more expensive than those manufactured from the other Asian countries. What's to keep American and the Japanese customer of components from switching to a lower cost provider? A concerned investor, Count de Monie