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

To: kolo55 who wrote (715)5/6/1998 11:58:00 AM
From: j rector  Respond to of 1418
 
>> Deswell's plastic operations are in a business marked by short supply and shouldn't be
impacted much. The circuit board business is probably seeing some pricing pressure.
And the assembly biz probably would see the same trends as Nam Tai, except for the
fact that Deswell is expanding their operations there rapidly to service new customers.

Excellent points, Paul. I expect that DSWLF's assembly buisness
may not undergo the same pricing pressure as NTAIF because of
their 'high-quality' work. I am concerned about the circuit board
buisness.

Expect that pricing pressures will continue until excess capacity
is reduced (6 months-1 year).

jr



To: kolo55 who wrote (715)5/6/1998 1:39:00 PM
From: Ron Bower  Read Replies (2) | Respond to of 1418
 
Paul,

Wouldn't lower raw material and component costs be beneficial in the short term with contract prices based on higher costs? Components are not a large part of Deswell's costs, but I read that the resin is 40% of Jetcrown's COGS.

What do you mean by "plastic business marked by short supply"?

Thanks,
Ron


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