Deswell Industries (DSWL) is a Chinese micro cap. If that fact alone isn't enough to scare investors away these days it also posted negative earnings three years in a row. Despite this I believe the company is a compelling investment with a large margin of safety at today's prices thanks to: 1. a rock solid balance sheet, 2. shareholder friendly management and 3. positive free cash flow.
The ugly part
Before discussing Deswell Industries I guess I should start with a short discussion on why I think investors don't need to worry about fraud, and the explanation is simple. The company become public through an IPO in 1995, is debt free and has been paying steady dividends. The...
Only subscribers can access this article, which is part of the PRO research library covering 3,577 different stocks.
Growing numbers of fund managers and other investment professionals subscribe to Seeking Alpha PRO for equity research that is unavailable elsewhere, so they can: