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

To: James R. who wrote (604)	4/1/1998 12:05:00 PM
From: Chris Nevil	Respond to of 1418

James, thanks for a terrific, informative post! Chris

To: James R. who wrote (604)	4/1/1998 12:49:00 PM
From: j rector	Read Replies (1) \| Respond to of 1418

James, Wow! Great Post! After what you wrote, I feel very comfortable with margins going forward. The mix of products may change, but it appears that the margins in individual areas should be maintained for the forseeable future. Based on what you are saying, significant competition to DSWLF could only come under the (combined) circumstances below: 1) competitor based in China 2) Significant capital to purchase machinery both fab and test 3) Managment expertise in printed boards. Given the absence of significant capital in Asia right now, unless a US-based company (or NTAIF) attempts to compete, I don't see margin erosion. j.

To: James R. who wrote (604)	4/1/1998 12:55:00 PM
From: Brooks Jackson	Respond to of 1418

Many thanks, James, for a wonderful post.

To: James R. who wrote (604)	4/1/1998 2:10:00 PM
From: SBerglowe	Respond to of 1418

James, I follow this thread but I am not an investor at this time in Deswell. I'm wondering if you have also had occasion to visit Namtai, and what your opinions of that company are. You may wish to post an answer on the Namtai thread so as not to clutter this thread.

To: James R. who wrote (604)	4/1/1998 5:09:00 PM
From: Ron Bower	Respond to of 1418

James, And I will add my thanks. Very informative and it helps a lot. I have interpreted releases to mean that Deswell was outsourcing engineering on the plastics molds but recently bought a software package that will speed up the process, lower costs, and put this work inhouse. Did I understand this right? If so, would you have an idea what percentage of the costs would be attributed to this work and what the savings might be going forward? Do you know the source of the Toshiba machines? I didn't think Toshiba produced plastics extrusion machines and was wondering if they were units that they were using. If it come from one of their plants, they may be looking at outsourcing the work - could lead to a new customer - could lead to more sales for Kwanasia, etc. Impressions - Lau seems very straight forward, more concerned about the business and not at all concerned about the price of the stock. IS this correct and is it typical of the upper management? Thanks, Ron