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

To: jmt who wrote (1163)	1/20/1999 11:15:00 AM
From: kolo55	Read Replies (2) \| Respond to of 1418

They are using cash to buy back shares. If they can see a visible growth path for their business, then using excess cash to buy back shares is a conservative strategy. I agree that if an attractive business is available, then they should look at it. I originally thought they should consider getting into the printed circuit board manufacturing business (making bare boards). That biz is cyclical, and right now is suffering from poor margins. But over time, that business will grow substantially in China. The best way to do this, would be to JV with one of the large board manufacturers from Taiwan. That way Deswell would have access to the technology and know-how of a major player, and Deswell could contribute their in-country know-how and some cash to the JV. This business would go one step further toward giving Deswell the capability to making consumer electronic products, from the board, through assembly, to the metal parts and plastic casing. This is quite similar to Flextronics manufacturing campus in China. Paul

To: jmt who wrote (1163)	1/20/1999 12:05:00 PM
From: Bobcat	Read Replies (1) \| Respond to of 1418

I am not sure I agree with buying into another company just to be doing it. How many times have we watch major American Companies squander away a large part of the company diversifying into other business. Indeed AT&T has done it and may be doing it again. That can very tricky and takes extremely good planning. I think it pays to be careful too. DSWLF is a fairly young company yet, lets give it some time yet. It is easy to second guess when we are not in the managers chair. I think things will work out well for them.