Deswell Industries: High Yield Small Cap That's Too Good To Be True?
Saj Karsan | Oct 29, 2012 06:53AM ET
Before getting too excited about this company, let's check the incentives. There we see that the chairman of the board owns 5.2M worth of the company, another board member (and ex-CFO) owns 4.7M, and the new president owns 550K worth of stock (all at current prices). Seems like the kind of setup where management wants to drive value for the poor small cap shareholder.
Time for the cherry on top: the company also pays a 7.3% dividend. But before you get too excited, this is a Chinese company and therefore each investor will need to decide if something that seems too good to be true actually is.
Happy hunting!
Disclosure: Author of the article is long shares of DSWL
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