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

To: j rector who wrote (1010)	10/8/1998 1:48:00 PM
From: Madharry	Respond to of 1418

Mr. lau should act in the best interest of his shareholders. If he has a better strategic use for the funds then he should hold on to it. I am a long term shareholder and if the stock goes down I have the opportunity to buy more. Excellent business opportunities may present themselves down the road, and cash is king.

To: j rector who wrote (1010)	10/8/1998 2:11:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 1418

j, It may not have occurred to them. As you know, Deswell management pays very little attention to the stock price (unlike US management) and is only concerned with the company activities. I prefer that to the stock manipulation we've seen from some other companies. I have been against a buyback when proposed at higher levels, but feel they should consider it below $12.00 as they would be buying stock for less than asset value (not BV). $2-3M wouldn't hurt the balance sheet and would do a lot to support the price. It would also boost the dividend distribution and BV making their options worth more. Good for investors and Insiders. FWIW, Ron

To: j rector who wrote (1010)	10/10/1998 1:50:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 1418

J, (and jrorig on Yahoo) I've decided my position on a stock buyback was influenced by the amount of losses I've had over the last few days and not by good judgement. After further thought, I now consider it to be the wrong thing for them to do. I have considered how much benefit we would get from them spending $2M on a buyback that would likely buy them 200K shares. It would decrease the dilution and make BV/share worth about 3.5% more. The stock price would go up 20-30%, perhaps more, but the value of the company would not substantially increase. If they hold and use that same $2M, the long term return would likely be much higher than the temporary increase in the stock price. I would rather they keep the cash and use it than buy back the stock. I want company growth, not artificial stock price growth. A buyback might limit their use of funds and that's the last thing I want to do at this time when cash is so powerful in Asia. FWIW, Ron