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

To: j rector who wrote (1246)	4/12/1999 5:51:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 1418

j, Stability in client orders is what kept them going until Mita fell down on them. I think Jetcrown is seeing new client orders, but it looks to me like Kwanasia isn't seeing much more than Behringer and InterTel. The circuit board business would be VERY competitive with the lower demand. Not only that, some of Jetcrown's customers are competing for the same business as Kwanasia. Deswell has to weigh a Namtai/Albatronics bidding on work that will provide business to Jetcrown versus bidding on the contract themselves. Owning Kwanasia could also prevent business with Flextronics, DII Group, and other ECMs producing in Shenzchen. Right now, I like the thought of them buying into a resin supplier located in Hongkong. There's a small company that recently reported losses because of the low demand that might be interested. Deswell buying in would not interfere with them supplying other plastics companies that aren't in competition with Jetcrown and Jetcrown could provide the supplier with a lot of business. Seems like a good fit. A lot better fit than Kwanasia. JMHO, Ron