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: mod who wrote (1041)	10/13/1998 12:28:00 PM
From: j rector	Read Replies (1) \| Respond to of 1418

Dennis, Dividend will be 25-35% of earnings depending on such things as cash, etc. Given that they are in a strong cash position, I expect dividends to be about 1/3 of earnings for the forseeable future. If earnings are flat, we're looking at $.80, if earnings increase, ?

To: mod who wrote (1041)	10/13/1998 9:55:00 PM
From: Dick Jaffe	Read Replies (1) \| Respond to of 1418

I hate to rain on this thread's parade, but wasn't Mita one of Deswell's principal customers? I heard a report on the news today that Mita was bankrupt and was under investigation by the Japanese government for falsifying their financial reports and paying out dividends from nonexistent profits. Mita's president has resigned. Could it be that there is a substantial account receivable from Mita on this company's books that may not be paid? Wouldn't this scenario account for the recent weakness in the stock? Lots of questions that need answers. Until they are forthcoming, I wouldn't hold much hope for the continuation of the Deswell dividend.