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

To: P314159d who wrote (20214)	8/26/2000 2:19:12 PM
From: max power	Read Replies (2) \| Respond to of 21342

Pied,your thoughts on this.... <<<Re: any thoughts on this. by: capt_smartjack (41/M/Naperville, IL) 8/26/00 10:24 am Msg: 21348 of 21356 Inventory buildup at SBC is a very big concern for this quarter. I do not believe that the VZ strike is going to be a big factor for this quarter, but the SBC inventory WILL. Orders have dropped way off for this quarter from SBC due to this large inventory. WSTL thought that the ramp in installs would take care of this inventory buildup, and the quarter would be okay. That has not happened, and this quarter may be in trouble. Unless SBC REALLY turns up the steam in September, I don't think WSTL will make numbers this quarter. I think they will be lucky to report $100 million. That is less than last quarter, and way less than the estimates for this quarter. I still like the long term prospects for this industry, and for WSTL. All of Westell's customers are ramping up installs, and the orders will continue to increase. But, this quarter will be hurt by this inventory buildup. In short, look for a bad Q2 from WSTL when they report in Oct, and then it will be off to the races from there. The problem will be that WSTL has started a trend of meeting the numbers and going into positive earnings. The street was FINALLY going to show some respect. Not meeting this quarter will hurt that. I believe all the TRUE long term holders will be okay into next year. But, if your looking for a quick pop now, you may be disappointed in Oct. >>>>