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Technology Stocks : Westell WSTL
WSTL 5.680+5.0%Nov 20 3:59 PM EST

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To: bill c. who wrote (8520)12/26/1997 2:27:00 AM
From: Trey McAtee  Read Replies (1) of 21342
 
steve--

>>SteveG: >> That's a total of 1MM WSTL lines from now until 2002 - this would yield a growth rate of about 35% (150K in 98, 200K more in 99, 275K more in 00, and 370K more in 01). Competitively at, say, $400/line. With 20% pretax margins - yielding approx $40/line after tax. So we may see $6MM (or .40/share) in profits in 98 (providing no other costs/charges), with a 35% growth rate. This would justify a WSTL price of $14 sometime in 98. And THIS is optimistic. First Call consensus estimates are actually for a loss in '98 of <.57> and a gain in '99 of .06. <<<<

i simply can not believe you said this. the company is expected to lose money in FY 98. if it makes money the stock will go very high. 14 a share? not even remotely likely. thats only a p/e of 35. it will be much higher.

good luck to all,
trey
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