Frank:
I re-read the Westell DSLAM announcement, and I think the wording about the product is " ... has undergone extensive lab and field-testing and met with tremendous customer acceptance". Now what the heck does "customer acceptance" mean? Evidently it doesn't mean orders. I don't see the "D" word, i.e. deployment, anywhere in the press release.
I think today's market reaction to this product announcement shows a certain maturity on the part of potential investors in ADSL. If this announcement occurred about a year or so ago, all hell would have broken out in the WSTL stock, and it would have risen 20% or more. Today's investor in ADSL has been stung once or twice too often by the technology announcements. The "story" part of ADSL is getting a little old and until the RBOCs start deploying the stuff, which would result in product sales of substance to companies like WSTL, I think we will continue the Chinese water torture in the stock price which has been going on for so long.
Of course, LU or some other company, may end our suffering with a buyout. Their stock has risen so much, they could swallow WSTL, at hopefully $15/share, without too much trouble. I personally think this will happen to WSTL, and that is the primary reason for my holding the stock. I really don't think this firm can survive as a separate entity for long. |
