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Technology Stocks : Westell WSTL

WSTL 5.470

-0.2%

Nov 12 3:43 PM EST

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To: Michael F. Donadio who wrote (18958)	5/27/2000 1:19:00 AM
From: P314159d	Read Replies (1) of 21342

Well i just had to add my two lire...(cannot afford the pennies) >>NOT THE JUST THE MARKET! To the analysts, it is not. At the briefing they got 2 bad pieces of information which fed this problem. One, Lucent is no longer in the picture. It was deferred at an earlier conference call. The company "mgmt" chose to bury it then when the stock was going up (and Nelson couldn't have had all his shares sold). Waiting instead to unleash the news when the stock was trashed from their ever popular brilliance in managing expectation of what the margins would be when DSL took off. Which is at least several points lower than an analyst thought! (Tongue in cheek). It was a boatload miss. Now they are selling the lucent deal on their own and every analyst is buying it just like they bought the margin game! More suspicion to follow. Second was that the margin issue won't be solved this quarter or next by much! Why, because the chip prices for the quarter were fixed at higher prices on lower volume expectation. Bad planning! Now, the next quarter is fixed by today's prices which are 20% higher and that is not good when you don't have a "margin " to work with! Thus it will take several qtrs to fix as analysts "see" it, so they see the market weakness and say sell. We can buy back cheaper. I have heard this and that about CC, but a single firm would not be controlling this much volume! It is ANALysts who have instructed some selling only to come back later. Now I mentioned that the analysts see these declining numbers in margin and figure no profits. Here is where I differ from that camp. I don't see the margins that MZ wants to post and I don't care. I have carried out financials with very low CPE margins and still see the EPS growth that is necessary to get WSTL to big numbers. It does not revolve around 24% OPex as he says...it more like 15 to 16% where the real growth is popped. That is where the inflection point in the EPS resides in the next 3 qtrs as modem sales explode. MZ, you have to achieve that. It still means solid growth in each area. >>SHORTING OPPORTUNITY. I gotta address this separte

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