Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ron Bower who wrote (968)	9/4/1998 10:43:00 AM
From: jmt	Read Replies (1) \| Respond to of 1418

We will agree to disagree: I will bet you one share of Deswell the Yuan devalues by the end of the 4th Quarter. The projection is not based upon the past, but the future, to support growing unemployment and economic and social unrest. Growth is well below the required targets, and is only supported to date by adding to inventory. Business's are failing in China. The reserves are an issue as they are the hammer used to state China can support the currency indefinately. If this is not true the speculators will go after the currency (as they are doing). To my knowledge government intervention in both currency and equity markets has never worked long term to fix fundamental problems. I am not clear on how a devaluation will help Deswell. Assets are in Inventory, receivables and $HK dollars. Inventory will be worth less, receivable are in $HK and Yuan will devalue, labor Costs may go dowm but So will revenue while cost of raw material will increase. Still a good value but price is not down for no reason. Markets are generally efficient. Off to buy more Amazon.com. jmt