Ram,
I'm sure you are right. I just prefer it otherwise. Here is btrader70's take. She had been negative coming into earnings and sold at 26. Good post:
messages.yahoo.com
Wow, I just checked the board here and I get mentioned in one of the newest posts! I first have to say that margins were better than I
expected...better than I was told they would be (last time I listen to someone from Park Ridge). I did sell at a higher price than the current one though,
so I'm still happy. Based on the numbers, and 22.5% gross margin, I actually thought we would have a better run this morning. I still expect it to close
around 27. Matt, I hope your faith in the company pays off. The key is to get margins near 30%, everyone knows that revenue growth isn't a problem.
What people don't understand are the costs associated with outsourcing, but I will let some others discuss that issue. Personally, I believe that every
tech fund needs a number of broadband parts companies in their portfolio, and right now it looks like Westell should one of the smaller cap plays at the
top of the list. I remember a statement that an analyst made about Broadcom awhile back "Broadcom is the arms dealer in a major campaign that will
accelerate at an incredible rate." Westell could be the DSL "arms dealer", supplying the parts to SBC, GTE, etc., but I still believe margins need to
improve. A very important point that should make "longs" smile is the fact that many money managers will take positions in Efficient, Copper Mountain, etc., and apply a portion of the money to Westell. By the way, you guys weren't TOO hard on me after margins came in higher than I expected. I guess the only reason Sweet Lou didn't yell at me more is because I don't have any shares right now. Then again, he could have offered me $40 to stay off of the board! |
