<<AND IT IS NOT THE JUST THE MARKET!!! (I know the mkt is not helping, but something else is going on???)>>
Ski, just what do you think this may be?
We both know that back in '97 WSTL found itself in a bad position with DSL not being rolled out. The erosion in price came with that realization and the lack of business. WSTL was all potential that might never come to light.
Today that is not the case. Revenues are growing explosively and its production facilities are at capacity. Its future is clear and bright.
Part of the problem, some have alluded to, may come from warrants that are still outstanding with the Castle Creep group. I believe they expire at the end of May. The bad market is playing into their hands. Gary understands this better than I and I am just restating what I have heard. I don't know whether it is true or not.
What I do understand is that ever since the FED has raised interest rates .5%, with the expectation that they may do it again after June, THE FED HAS GIVEN LICENSE FOR SHORTS TO SEIZE CONTROL OF THE MARKET. No news, no matter how good will move a stock upward for more than a brief period in this environment. THE STOCK THAT GOES UP IS JUST A SHORTING OPPORTUNITY. In fact I believe that some of the rallies are purposefully orchestrated by shorts. Shorts sell their positions, stocks appear to rise, longs come in, prices rise and then the shorts begin all over again.
Back in '98 when the market collapsed following Russia's problems, and sunk precariously by October, Greenspan actually initiated an attack against shorts by unexpectedly -- no announcement, no meeting -- lowering interest rates. The shorts had to cover, the markets saw direction and rose, and a vicious cycle was broken.
Now however, the problem is INITIATED BY THE FEDERAL RESERVE. They have raised rates, and threaten to continue this into the forseeable future. A FIELD DAY FOR SHORTS. The FED is creating an evil worse than the one they are trying to correct, IMO. They tried to end speculation in the market, but have only succeeded in creating its negative -- speculative shorting.
You yourself said several months ago that by the time WSTL might finally be doing well, the market would not. You were unfortuately CORRECT. Such seems to be our fate coupled with a residual Castle Creep problem.
I don't see any problem in Westell as far as fundamentals are concerned. Today it is very well positioned, a great stock with all I thought it could be actually being realized.
Until the market climate changes, however, neither a CSCO, nor a SUNW nor a QCOM will do well. WSTL is an emerging dynamo, just getting its legs, and is now having them kicked from under it.
When it's clear that the FED will end this market harassment, WSTL and others will rise accordingly. Until then, for those who can, take this opportunity. For those who can't, go fishing.
All the best,
Michael
P.S. Lets see, where do I stick this pin? |
