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

To: mod who wrote (985)	9/22/1998 9:36:00 PM
From: Shane M	Read Replies (1) \| Respond to of 1418

Dennis, Thanks for posting your comments re the annual meeting. I interpreted your comments as "cautiously optimistic". Was I interpreting correctly? 85% capacity is good IMO. Shane

To: mod who wrote (985)	9/22/1998 10:00:00 PM
From: Ron Bower	Respond to of 1418

Dennis, I 'd like to comment, but everything you report is as I expected. As typical with Deswell, business as usual. The one surprise was Behringer buying 100K more shares. From what I'm seeing, he can be considered an Insider. Put him with Lam, Li, Leung, and the rest and they control 65-70%, but it's split among them in a way that nobody can be considered to have any individual control. Really appreciate the report. Thanks, Ron

To: mod who wrote (985)	9/23/1998 12:43:00 AM
From: kolo55	Read Replies (1) \| Respond to of 1418

Thanks for the notes from the annual meeting. Its sharing this kind of information that makes the net a new kind of 'teaming device'. I attended the Flextronics shareholder meeting in San Jose on Friday, and the CEO made some interesting comments about their Astron subsidiary, a Chinese based manufacturer of minature gold plated bare circuit boards. Here is the link, and some relevant comments: Message 5799673 8. PCB business is weak - Margins in the board manufacturing business are under pressure. This business has been in a world-wide slowdown and major players have had significant revenue declines and pricing weakness. Flextronics has their Astron subsidiary, and at the current time pricing in this business has weakened to the point that this subsidiary is losing money for the first time. Fextronics still likes this business long term. Marks says that it is a capex intensive business, and they are seeing capacity being retired instead of spending the capital to upgrade, particularly in Asia (!!??). I used to believe that Deswell manufactured bare circuit boards, but I don't see any specific mention in the wonderfully detailed Annual Report this year. Does anyone know if they do? I wonder if this could be a fourth business leg for Deswell in the future? This last 12 months, this biz has had serious price declines. Today, one American board manufacturer, Merix, that has a $4 stock price, announced a $3.93 loss for the latest quarter. If Deswell isn't manufacturing bare PCBs, then they should get this word out. That sector has been pounded. Its become very clear, that Jetcrown's plastic biz is the crown jewel in Deswell's portfolio. Again, thanks for the post. Paul