<"About the fed raise in June and WSTL at 13 to 15 range, I had to read your comment to figure that 13 to 15 is ok and a double or triple this year from there, can still net me out ok.">>
Hi Pi,
I certainly am NOT anticipating WSTL going down to the 13 to 15 dollar range. That said, if the Fed continues to raise interest rates, some of the best minds are unsure as to the consequences. Should a recession be triggered, the Fed will have to reverse course and hopefully induce a rally.
The stock price action in my estimate, is a market phenomena and not one related to WSTL's performance which is exceeding my best expectations. WSTL's current price represents opportunity for those with vision. As bill c just pointed out the margin issue is really a NONE issue.
If we look historically at the consequences of coming out of a market downturn, NEW MARKET LEADERS EMERGE. I am convinced that Westell can be one of those.
DSL and BROADBAND are growing explosively. As Marc clearly said, (at about 28 minutes) WESTELLS UNANNOUNCED CUSTOMER (I presume SBC) may be its largest customer for the year.
In spite of the market sell-off, which included such greats as CIEN, SUNW, and CISCO (all of which had spectacular earnings announcements in rapidly growing market segments), it seems apparent to me that the trajectory of growth for WSTL, with its significant customer base and partnerships, should be astounding.
As Scott McNealy of SUNW has lamented, hopefully Mr. Greenspan will not kill the goose that laid the golden egg with his rate hikes.
Westell is already a steal at 20,
Michael
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