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Technology Stocks : Westell WSTL

WSTL 5.950

+2.6%

Dec 4 3:56 PM EST

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To: Trey McAtee who wrote (9416)	2/20/1998 5:19:00 PM
From: Vladimir Zelener	Read Replies (1) of 21342

Trey, Netspeed if I remember correctly makes CAP modems and DSLAMs just like Westell. So their chips supplier is the same company as for Westell - former AT&T microelectronics and now called Teleglobe .. or something. The reason I asked about the modem price is because that was a major blow to Westel. Since RBOCs could not get a reasonable price from domestic ADSL suppliers they shopped around and found Alkatel, which promised $350 modem cards for mass deployment, plus DMT technology instead of CAP. When 4 Baby Bells announced their Alkatel commitment the price of Westell stock dropped from $50 ot $8. It did shortly rebound to $26 but now it is back to $13. Even if I shared the optimism of some people on this thread, that cable modems approach is not a formidable competitor to xDSL ( and I do not) even then I would be quite worried about Westel. 1. Modem card is quite expensive 2. CAP technology acceptance is quite questionable 3. New competitors from HDSL camp (PAIR and ADTN) are eager to get into ADSL business 4.Big networking cos. like COMS, BAY and ASND announcing their own developments in the ADSL field. Since I have a small long position in WSTL my only hope is buyout.

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