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

To: kolo55 who wrote (20239)	8/31/2000 12:49:27 AM
From: P314159d	Read Replies (1) \| Respond to of 21342

Right on about WSTL market share. WSTL stole big biz from EFNT in the last month of the qtr. But I have some reservations about the comments posted from Yahoo's capt_jack on this thread. the call for a 100m or less rev stream this qtr is very premature to call in the month of August as one-third of the qtr remains. Plus due to the nature of the biz with SBC it is due to be back-end loaded qtr. with probably a record backlog of orders for the NEXT qtr. And, as usual, the stock will reflect the EXPECTATION of Oct to Dec qtr more than the current results. I believe the current focus of this qtr report will be Gross margins and how they are making up for the limited profit potential of this business as witnessed in the previous qtr. On this front, it was discussed in the last CC, that the freight charges and extra testing time plus the extra resources last qtr to build those test centers that have been shipped to SLR, would be eliminated this qtr. Each POINT you add to the 60m CPE sales' GPM adds .01 cents per share in EPS. All these factors are contributory to the lower margin figures recently posted. Much was said that EFNT had some 6 % better GPM. I can attribute several points due to the above factors and a few more at the expense of the expediency of component shipments for the FAST ramp (WSTL was little prepared for this). While I won't expect a change this qtr on the expedited component procurement, I would expect less of that factor next qtr. E.g.,if DRAMs go down a buck = .005 cents EPS on the CPE sales. Figure similar effects for reduced pricing on larger scale commitments to orders for 2001. Furthermore, a rather significant push in a higher Margin area such as Transport Group will be a very large point that comes across on Oct. 20. future sales in this area will fast approach the 40% margin goal and likely surpass it mid next year on 10s of millions in volume. Those factors will keep next years estimates lofty. Of course by October the tide always turns to stocks for next year by the investment gurus, bidding them up in a Xmas frenzy. Short Squeeze will be a subject of the past. Nuts pressed from extra-Virgin oil to the final 4th pressing ... Secondarily, the cash management will come up in discussion. It should follow that slowing sales mtigates this qtrs AR build, and with certain insider financing activities well discussed by the thread, the draw down will be minor Expect a further financing activity by the chief architect, most likely in the form of a small offering AFTER the stock takes hold in the 4th qtr.and then the CPI spinoff. Sorry that's way too much tea leaves for today.

To: kolo55 who wrote (20239)	8/31/2000 4:07:39 PM
From: Logain Ablar	Respond to of 21342

Paul: I was unable to listen to last quarters conference call and with the action of the stock price since it was a mistake on my part. Do you have a link for the call if its still available. I've been long on WSTL but considering the advance in the NAZ the stock has not rebounded (and EFNT & CMTN have). While it is forming a nice coil from a TA perspective these coils can break two ways. While all it will take is positive news to propell the stock and force short covering bad news will send it to retest $13. Thanks. Tim