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

To: j rector who wrote (819)	6/28/1998 2:29:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 1418

j, What do you mean by: "Analysts are primarily looking at stocks with IB potential" I would think this would confirm rather than question your strategy? TIA, Ron

To: j rector who wrote (819)	6/28/1998 2:59:00 PM
From: Shane M	Read Replies (1) \| Respond to of 1418

j, I don't really feel expert enough to voice my opinion on your last two posts, but ... I'm not letting that stop me. Regarding a share buyback. I really don't lean either way on this. Based simply on taxes in the US, I would prefer the dividend go into share buyback or expansion. But I'm really don't feel strongly concerning a stock buyback vs. other use such as expansion. It seems there are lots of cheap companies in Asia right now, and if management can find some at better valuations than DSWLF then I'd prefer them use the money for acquisition. I'm swayed by Ron Bower's comments (I think) that during downturns the companies that can survive often end up in stronger positions than when they entered the downturn, because the unfit competition has been greatly weakened. If you're familiar with the semi-equipment sector this is the story of the rise of Applied Materials AMAT. They seem to always come out of a down-cylce stronger than when they went in. You're second post seems to imply that the Analysts/Investment Banks control stock price, and I'm well aware of what an army of brokers pushing a stock can do. Long run, however, price is highly correlated with earnings. It'd take alot for me to believe the market is becoming irrational to any large degree. DSWLF might be in its niche of irrationality for now :-), however. BTW, I'm never wrong <g>. The market is just irrational. <g> Shane