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

To: peter michaelson who wrote (939)	8/28/1998 3:00:00 PM
From: mod	Read Replies (1) \| Respond to of 1418

I haven't seen the latest Barington report. You might try calling their analyst, Scott Grieper, 212-974-5730 and see if he'll discuss it and/or fax it to you. Dennis

To: peter michaelson who wrote (939)	8/28/1998 3:35:00 PM
From: jmt	Read Replies (1) \| Respond to of 1418

Peter: I actually sold half of my position shortly after the open today. I had added this a month ago at $13. I had a long discussion with John Nesbitt yesterday, who knows and respects the analyst at Barrington, but stated he knew of no company specific reason for the downgrade. The only reason why I sold is I now believe their are better opportunities in the US markets. Some of the discussion yesterday surrounded the average trading multiple of Chinese companies. This used to be 6x to 9x. Currently with the asian crisis that multiple is closer to 4x to 6x. While Deswell should command the high end at least, market sentiment may dictate for a while here. I further questioned Nesbitt on what the analyst (Scott) at Barrington might know about receivables or inventory issues, and the response was nothing beyond what has been released. Again the main driver was that Barrington had been baddly burned by another Chinese concern (which Ron discussed), and this may be a knee jerk reaction. I am amazed Deswell has fallen so much, given the balance sheet and dividends. The reason I sold was simply that I don't see it going above $13 to $15 in the near future, and I hope to do better with half the money in the short term and get back in later. Best of luck. jmt PS: Nesbitt stated their may not even be a report, just a one sentence downgrade. I though John Nesbitt was well informed and a straight shooter.