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Technology Stocks : Westell WSTL

WSTL 6.060

-2.1%

10:02 AM EST

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To: Trey McAtee who wrote (11614)	6/17/1998 6:27:00 PM
From: Kevin Thompson	Read Replies (1) of 21342

Trey/Skiawal: Sasktel is hardly a loss... in fact, with the trips up there to install and inspect, combined with the very small implementation it's almost certainly an unprofitable contract. However, it is an early implementation, and that is itself valuable... With dsl in its infancy, it seems that a more appropriate strategy at this point might be to do something like ALA- just get the damned contracts signed to put your boxes and cards in, and worry about profits on the follow-on orders... i.e. get huge, then make money the old fashioned way- by dumping your products until there is no effective competition left... An equally attractive American method of cheating that WSTL may wish to try is to invest tons of money into their "research and development" (which actually hides employee hires, etc.), and then take huge "one time charges" while still being able to profit in the future from the written-off R&D investment. Kev

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