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Strategies & Market Trends : Electronic Contract Manufacture (ECM) Sector -- Ignore unavailable to you. Want to Upgrade?

To: Christian Atallah who wrote (1665)	8/5/1998 8:18:00 PM
From: kolo55	Read Replies (2) \| Respond to of 2542

Deswell is for real, and I own it. It is somewhat more risky than the stocks I usually talk about here. Check out the Deswell thread. Several guys on the thread have talked to the CEO Richard Lau. They will release earnings before the open next Monday (could be late Friday). The market has discounted a significant drop in earnings due to the Asian crisis. I expect revenues will be flat/decline slightly sequentially, and I really don't know the impact on earnings. The company should resume growing revenues in the 2nd half, but I don't think they will keep growing at the 40-50% per year they have been over the last five years. This stock takes some work to investigate. I recommend calling IR and getting the investor's package. It has a lot of stuff in it, so we won't have to answer all the obvious questions on currency risk, etc. Most of the concerns you might raise has been discussed on the Deswell thread. Meanwhile, I sure hope the selling in the ECM sector tails off. This is getting a bit old for a fully invested investor like myself. Paul