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

To: Terrapin who wrote (1160)	1/19/1999 11:58:00 AM
From: Ron Bower	Read Replies (1) \| Respond to of 1418

Thread, I am an admirer of Mr. Lau, but don't ignore the other two principles in the company, Mssrs. Li and Leung. These three have worked together to build Deswell along with Dickson Lam, Eliza Pang, Shu-Kwan Lee, Tam Man-Chi, Cheung Kam-Tong, Wm. Sang, and the rest of Deswell's management. All are responsible for the success of the company. Mr. Lau is the most visible, but it's the team that has produced the profits and growth. The management is the driving force behind Deswell and I would strongly protest a merger with any company that did not keep Lau, Li, Leung in control of company operations. I would prefer a venture with another strong company rather than them buying a financially stressed one. I feel it would be better for them to grow internally than to go that route, but I also feel they are at a disadvantage because of their size. I've been through this and it's the large companies that end up being the most successful during the weak periods - companies like Flextronics. If interest rates were high, the situation would be different. Bank lending is tight but the large companies can always find a source for cash if they have proven record of being successful. The large companies operate at higher volume and lower margins until they starve the smaller companies. Perhaps my proposal for a merger with Namtai is not a good one, but IMO Deswell must go forward or they risk going backward. They have re-acted well to the situation over the past year by not making any rash moves, but I feel they must get aggressive in 1999. JMHO, Ron