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

To: Madharry who wrote (651)	4/15/1998 10:54:00 PM
From: j rector	Read Replies (1) \| Respond to of 1418

IMHO the price/sales issue is overblown. What is really important is sustainable cash flow. What is the probability that margins will shrink? Seems to me that an assumption of shrinking margins is already built into the stock price at this point. As Paul said, if margins don't shrink, stock is undervalued. If margins do shrink alot, stock is fairly valued. Given capital costs to enter buisness, lead times, customer profiles, and Chinese location, no way! Given the current state of affairs in Asia, it is actually less likely that competitors will rise up to challenge DSWLF. After all, there's a big cash crunch and alot of cash is required to enter into the buisness. JMHO--a big-time yellow bull.