Trey,
as for waiting on the market, they did a piss poor job of valuing the intital deployment, what makes you guys think things will be any different this time.
This is playing Monday morning quarterback don't you think? I think these guys are much smarter than you believe. A lot of this game is composed of "guessing" where things are going to be x-months out. That means making decisions without having enough reliable information.
Now and then I re-think about why Amati bailed on the Westell merger when there was so much easy $$$ to be made. I have just about convinced myself Amati KNEW when the CG/TI chips were going to be released realistically in commercial quantities. (Amati was in on a portion of the chip design process for both TXN/MOT and I'm sure they had more than an educated guess as to how long things were going to take). So where would Westell be today if the AMTX/WSTL merger went through? FLAT BROKE that's where. I think Amati knew.
the possibility is very real that we could get BEL DMT, and the market would take no notice...why? because we are the little guy and haven't a prayer against big players like CSCO, ALA, etc. sorry hal and others, but i think this is a bunch of rubbish.
They would take notice, only when they start to see the $$$ show up on the balance sheet. I think Hal, Dave and others are dead on and the last couple of posts have described the situation pretty well.
with the right manufacturing partners, which i think WSTL has, they will be a big winner.
This means absolutely nothing if all your partners think the life span of you company is time limited. I don't think any of those partners care if Westell sinks or swims. I can easily see Westell shrivel up like the Wicked Witch of the West unless these chips get released in quantities sometime soon. What if they don't? Well if not they better sell shop themselves around. The later they delay, the less they will be worth.
ALA is probably already choking on their fab, which reduces their ability to pressure prices. WSTL doesnt have that expense. so the question is...who produces chips cheaper...ALA mietec or TXN?
What chips??? Again, Meitec is putting units out into the field and TXN is not. So right now it does not matter how inefficient AL's process is. -Eric
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