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

To: Leroyt who wrote (20496)	9/21/2000 3:44:08 PM
From: Michael F. Donadio	Read Replies (1) \| Respond to of 21342

Leroyt, [conjecture] I am beginning to think that the abundance of Goldman Sachs accumulation may be related to the eventual spin off of CPI. They were the ones that did the Teltrend/WSTL merger so it is also likely they will be involved with the CPI. It is not more than 6 months down the road, and could be much sooner than that, so GS is probably already laying its strategy. As far as ASPs go they will only be getting hotter with the new computing architecture evolving between Oracle and Sunw. Sunw's recent purchase of Cobalt to get into the internet appliance space bespeaks ASPs emerging NOW, and all this DSL and Cable broadband rollout IS the catylst for the ASP market which at 56K was too limited. ASPs will be real big, Michael

To: Leroyt who wrote (20496)	9/21/2000 4:17:28 PM
From: Mark[ox5]	Respond to of 21342

I don't do research, I just rely on posters ;) As for SBC - they had a target of 1M at beginning of year.. it was not THAT backloaded when they first posted the target.. due to them (excuse my language but F****** up) all of July and August due to transactions now they must really move at the end of the year. I am sure they did not "plan" to mess up that badly and their original target was based on a rather smooth upswing, not 2 months essentially lost and then trying to get a ton out at the end of the year. If not for self install, I think they would fail their target to be blunt. As for ASP, it SOUNDS like a big market, but a market that has been talked about in tech circles for minimum 2 years (and Im not a techie) so if I've been reading about it for 2 years Im sure the "market" has been talked about for more than 2 years. The market has NOT devleoped as fast as "estimated" when I first started reading about it a few years back. That said, the market has potential.. that said a lot of people will be vying to get into this market, and ALL will have more cash than Westell and most will have the same customer contacts that Westell has because a lot of these companies are larger (Im not talking about the little pure plays out there, but the bigger co's) All I am saying is a move to try to capitalize on ASP or mission statement to try to morph CPI to ASP doesn't guarantee anything. So let's keep that as the realization and when CPI division starts bringing in ASP revenue, great for them, time to move the valuation of the division upward.. but its nowhere near that area now. Cash is still a concern and even that little analyst could figure that out.. to move into a market like ASP against MANY well capitalized companies with overpriced IPOs plus bigger companies where ASP is only a small part of their business... will require cash. Hence a secondary offering or debt offering would be advantageous to the company, but not necessarily to shareholders. Just my opinions of course! CPI is not a $1 billion IPO is all I am saying... Mark