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

To: Charlie Smith who wrote (20475)	9/21/2000 12:22:13 PM
From: Mark[ox5]	Read Replies (2) \| Respond to of 21342

Charlie, CPI most recent Q was $9.78M Year ago was $6.971 <40% growth year over year> Source: biz.yahoo.com I will average that out to around $8.5M a Q (without going to look at every Q this year) and that gives me a historical revenue of $34 million over the past year. If you assume 40% yearly growth going forward that will come to a whopping $14M in growth over the next year. So now you are talking $48 Million, lets be generous and say they can get to $50 Million The math makes no sense for a 36-40% gross margin company in a sector that sure ain't fiber optics or even DSL.... Ridiculous, and they actually get paid for this stuff, and worse off some people believe these valuations. If you apply the 1.5 P/S that comes out to $35 million revenue for past year x 1.5 = $52.5 million valuation, not $1 BILLION Even if we drop a 5 P/S on it $35 million revenue for past year x 5 = $175 million valuation Play the same numbers with $50+ million revenue in the upcoming year (2000-2001) and I'm still laughing at the analyst. Mark