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

To: j rector who wrote (959)	9/3/1998 9:54:00 PM
From: Ron Bower	Respond to of 1418

j, Stock buyback - You forget one thing. The management of this company has paid very little attention to the stock price. How many CEO's would ask a caller "what's the stock selling at now"? Most would know not only the price, but the volume and other information. IMO -With current global economic situation, the company is much better off keeping the cash (paying the dividends) than using it to buy back stock. I am sure it isn't going to happen, but a prolonged recession could require cash. If they go as I believe they will, they will need a good cash balance for expansion or acquisition. Suppose they do start buying back shares. At what price would you sell? I want at least $30.00 for mine. With the small liquidity, any buyer of 50,000 shares would substantially increase the price. If the company buys, the EPS rises, the BV rises, etc. They couldn't get the shares anywhere near the current level. Not to go into the global, Asian, HK/China, US, etc, situation, but the value of Deswell is increasing in every daily news item. For you to consider. China is contemplating decreasing the amount of $US (now 60%) and increasing the amount of $Euro and yen in their foreign exchange reserves because they project a major decline in the $US. I think it would be the thing to do, and I think that Deswell should look at diversification of their currency. JMHO, Ron

To: j rector who wrote (959)	9/3/1998 10:26:00 PM
From: Ron Bower	Respond to of 1418

j, There I go again, acting like I know it all. Sorry. I might comment on the Annual Report and 20F if Schwab would ever send it to me. I DON'T HAVE IT YET!!! Over the last couple of weeks, I have been posting my thoughts on the below to others, but no one seems to notice. We are having a major shift in the global economy. Each day we are reading about Russia, Latin and South America are falling apart. Each day we read about US bank exposure to Russia, but US bank and corporate exposure in L/S America is far more extensive. Each day we read about IMF bailouts for Russia, the L/S American defaults are increasing. Regional currencies are devaluing at an alarming rate, banks are near insolvency, governments are helpless to stop the economic carnage. The US market and the $US are about to be hit, perhaps are already being hit, by the next wave of bad news - the problems to the South. Where does one make investment? 4.5% bonds? It will be a difficult search for 'value' as investors see the $US and US markets declining, the LA/SA markets down, Russia, Asian countries like Indonesia, Malaysia, South Korea, even Japan still in trouble because of inept politicians. Any company that has a strong cash position, excellent management, and good growth potential will be targeted. Let's see. Deswell shows $2.37 fully diluted earnings, 18% growth last Q, over $4.00 a share in cash, no debt, $1.00 dividend, etc. Think it will show up on a screening? -g- I have as much as I've ever had and am very patient. I've appreciated this latest falloff as it's given me a chance to add more at bargain prices. As I posted, my portfolio showed huge losses, yet I didn't even notice because I made great buys on Deswell. FWIW, Ron