Westell WSTL Message Board

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Technology Stocks : Westell WSTL

WSTL 5.800

-6.6%

Dec 9 3:58 PM EST

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To: Michael F. Donadio who wrote (18870)	5/21/2000 10:45:00 PM
From: P314159d	Read Replies (1) of 21342

i agree with your excesses theory, etc. But some drop looks to be a panic about the margin issue to me. that said, it will get resolved by the Sep qtr I suspect. At that time, as I see the P/S ratio playing out, even with the reduced figure of today, WSTL can be $ 40. As I have for numbers: Q1 revs 45m and Q2 at 60m, the latter supplies the forward projection for the next 4 qtrs at a rate of 100% annualized. Add-in at least 50m in forward sales for the other DSL group (TSG) and you arrive at >400m DSL sales projection. May be aggressive numbers but I believe the company is planning some higher numbers to compensate for the low margin figure in order to make the eps even easier. @ meager 4x multiple= 38.5 @ 5x multiple= 46 Besides margins should track closer to 15 to 17% by then and provide upside earnings projections. Fed should be done too. I expect to have to a good summer how bout you? Check out the institutional interest for Monday. The buy side is strong for tech on the "Supers" thomsoninvest.net

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