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

To: Ron Bower who wrote (1291)	6/7/1999 12:10:00 AM
From: Michael Burry	Respond to of 1418

I went looking for a reason DSWL traded its highest volume in three months, without luck. Then by chance I stumbled on a potential reason in my latest Forbes. I'll reprint my post from the Yahoo thread. A lot of stocks profiled in the Forbes I just received got a boost Friday. One story concerns Deswell. Though it doesn't mention the company specifically, it highlights Jabil and other contract manufacturers who are part of a movement that are seeing a huge boom in outsourcing. The very next story highlights NatSteel and Venture Manufacturing, Asian contract manufactures who went "from nobodies to powerhouses." The article cites that contract manufacturers' share of electronic products production will surge from 15% to 50% in time, and ends by saying "there should be room for a bunch of strong players." A rub-off effect on Deswell perhaps, but in reading these stories it is driven home just how tiny Deswell is, and how much opportunity is out there for Deswell. forbes.com Personally, I don't know that Deswell's management is up to the task, and there are capital limitations as well. But anytime a popular favorable light gets directed on Deswell's stock, no matter how peripheral, the stock seems to react. This could be a Tejon Ranch, where one day after years of neglect a high-profile story gets published in something like Barron's. The Motley Fool will go on record saying the stock should be valued at somewhere north of a 1000 times the current price. The stock will quickly triple and provide us all our exit points. Mike