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

To: Michael F. Donadio who wrote (19750)	7/30/2000 2:56:46 PM
From: P. Ramamoorthy	Read Replies (1) \| Respond to of 21342

Michael, Profit taking can not be ruled out. The price did touch 30 but the nervousness in the tech sector is too great to hold a trend. It is the vacation time. Come next quarter, good earnings like the last qtr will add to support. We are still waiting to see how TLTN merger impacted the bottom line and how the outsourcing efforts impacted the Gross Margins, in view of the order backlogs. By the way, the nervousness in the tech sector is not for a bad reason like lack of demand. There is a huge global demand for products. I hear from many people in the industries like INTC, MOT, Agilent, H-P, Nokia, Ericsson, etc. they have a huge backlog of orders from customers around the globe. These products can not be shipped because they are waiting one or two chips or something from Asia to complete the assembly. Why this happened? Recall the Asian crisis a couple of years ago and the Taiwan earthquake destroying production facilities. The Asian production has come back. But the demand for their products has increased much more than the supply. US companies (with order backlogs) are now talking to each other about their part needs and trying to work out a quota system or exchange parts. Nokia's story is an example. The market is not patient. They dump Nokia. WSTL still needs another qtr or two of good earnings reports to find firm support at higher levels. just rumors and opinions. Ram