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Technology Stocks : Westell WSTL -- Ignore unavailable to you. Want to Upgrade?

To: Michael F. Donadio who wrote (17662)	1/6/2000 10:24:00 PM
From: LiPolymer	Respond to of 21342

Hi Michael, INCA, REDI, etc. are some of the market makers for Westell. These particular MM's have been showing up on the "Ask" side of the trading with significant sized blocks, indicating they have a lot to sell and don't mind if the other MM's can see that. This link shows all the MM's for WSTL in Nov/1999 trading: nasdaqtrader.com We of course can't tie all the large blocks to Castle Creek, but INCA and REDI are infamous from our days of watching the VLNC hedging (and floorless death spiral attempts). Since CC has 2 other partners in the convertible deal with WSTL, it's very plausible the others have different MM's hedging their portion of the convertibles. Also, other independent short-sellers look for these "floorless" convertible deals, taking advantage of, and adding to, the overall weakness in the stock. In the classic "death spiral", where the conversion price becomes a function of the declining market price, the short-sellers work together to drive the price toward $0, knowing they'll get more shares to cover the lower the price goes. Scary stuff, and actually has worked a few times from what's been told. In the case of WSTL, IMO there is enough buying interest to absorb the hedging, preventing the stock price from getting into the "floorless" range (don't have the exact number but it's sub-$7), thereby ensuring a fixed conversion price is maintained. With the TLTN buyout, WSTL has the option of calling in the convertibles for interest plus penalty, so the convertible holders have major incentive to finish hedging very soon, preserving much larger profits. I'm pretty new to this game, but there are others on these threads much more knowledgeable that will hopefully jump in if any of the above needs correction/clarification. Regards, Gary

To: Michael F. Donadio who wrote (17662)	1/6/2000 10:25:00 PM
From: Skiawal	Read Replies (2) \| Respond to of 21342

<DSL for almost everyone? Of course, says Bell Atlantic's Fred D'Alessio Defers the question of universal service Bell Atlantic will put DSL in essentially every CO and most DLCs, Group President Fred D'Alessio told me at the long distance press conference. He is clearly a believer, expecting half the internet users to switch over to broadband so fast I think I should keep his remark off-the-record for now. They're putting in three hundred more DSLAMs next quarter, and will be equipping DLCs this year as well. Deployment will at least double in 2000, to well over half the network. That's essentially matching the first stage of SBC's Project Pronto, offering DSL to 70-80% of their phone lines. He was not willing to match SBC's other commitment, to universally offer broadband to everyone in the territory. DSL Prime thinks a universal service promise is both appropriate and practical for the Bells. Fixed wireless is coming to market at competitive costs, and can serve most of the 15-25% DSL doesn't easily reach. Within five years several technologies will be available for the last 5-10%. Less expensive remote equipment for fixed wireless or mini-DLCs are in sight, bonding IDSL circuits and various forms of repeaters have possibilities, and the few insolvable locations can be filled by satellite. Profitability may be limited at best, but the marginal costs of extending the network we believe will prove surprisingly low. Long distance approval may be more effectively obtained by promising universal service rather than the time-honored practice of buying Congressmen.> dslprime.com