I just hope everyone is able to take advantage of this 1/2 price sale, "blue light special". Many of the "market movers" were predicting a daq of 3300 by week end and it looks like they will make that happen. I would anticipate the firms with the buy recs are accumulating heavily here with small downside potential. I can't imagine why anyone would sell at this level, but primarily just appears market weakness. Interestingly the same 'market movers' predicting the daq of 3300 also expect a near term sucker rally then retest bottoms before the nice fall rally, if inflation stays in check. We'll see.
MikeM, i'm not happy about the margins either. My understanding from the cc, was that Alcatel Microelectronics was the major component supplier and as such, expensive. Numerous supply component companies will be coming on line soon, which will help margins going forward 8 quarters, resulting in margins better than 40%. WSTL seems to have the business model down, I also think if we see a larger worldwide DSL ramp, WSTL's production numbers will be a large part of a large pie and TLTN manufacturing should help a lot with this. DSL-CPE will have revs > $35 million in the coming quarter up from $16 million and year end they stated over $160 million, Q3 was $6 mill. Now if we can increase margins in this huge revenue sector growth, things will be golden. m |
