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Technology Stocks : Efficient Networks Inc - (Nasdaq- EFNT) -- Ignore unavailable to you. Want to Upgrade?

To: add who wrote (516)	10/8/2000 2:14:34 AM
From: Mark[ox5]	Read Replies (1) \| Respond to of 675

Well you actually made some sense in that post. First, TAP TAP is going to be about 5-10% of the overall business in about 2 quarters if the RBOCs take off as projected, so really what TAP is or is not is not going to matter in the big picture. You are calling TAP "DSL" in the future... ok that is your preogrative (sp?) All i see iN TAP is a business you have to pay 500 US workers at very high labor costs to run, and a relatively slow growing legacy business (granted I am not a visionary like you and MZ are, who can pinpoint the 1 very low valued public company <Teltrend> that is going to revolutionize DSL)... and on top of that the Teltrend portion was decreasing in sequential sales. If this is worth it to get to technology, great great buy. I am surprised all these other smart companies in the world with much larger currencies (i.e. higher stock prices and capitalizations) did not buy such a great business... but left it to Westell. Lucky for them. But what TAP is now is a combination of a low growth revenue business on Westell's side, with a negative growth revenue business on Teltrend's side, which combined will cut costs I agree.. but still be low growth (relative to the stocks getting real valuations in this market) I dont know if it is profitable and neither do you unless you are an insider... Westell does not break out expenses by product line so no one knows where the profit comes from do we? All I know is Westell has NEVER been profitable in its history... relying on soley TAP and CPI... has it? Only in the last Q, when DSL provided >60% of sales was it able to become profitable. So for you to say TAP is providing profit is .... strange. But you must know something that is not publicly available, because you know information that somehow through all my SEC diggings and research I could not find (that is total expense by division) If you say in the future this TAP business is reverting to G.SHDSL and this will revolutionize the DSL world, than the market sure has not recognized it, every Westell analyst report fails to mention it, but I'm glad you figured it out... the rest of us are pretty ignorant (especially those who invest in pathetic comapnies like Efficient) 2nd, if all this SDSL routers are to be "junked" very soon here than I have to say Mark Floyd and Efficient management has to be the sorriest group of management I have ever seen to buy a division from Cabletron that will only help them for 9 months and then this new technology is going to make it "junked" in that short time frame. Another victory for Westell and obvious mistake by Efficient. CPI, we agree on something. Commoditization i think would affect WSTL more because "at this point" (please re-read those words before you come back with a retort) "at this point" EFNT has more "business class" products and business than WSTL.. hence more of its product mix is not going to be affected by ADSL price erosion. But the bottom line here is you combine both companies and its not even a $3 billion company. The market is pricing both companies as glorified 56k modem manufactures ... you can take any 1st or 2nd tier DSL equipment maker with 3/4, 1/2, 1/4 the revenue of WSTL and EFNT combined and they are worth more to the market. (GSPN, NXTV, VRTA, TSTN, whoever) basically the market is saying these companies are both not worth much, revenue growth be damned.. the mutiples are 20, 30% that of other "dsl equipment manufactures" so instead of trying to convince me please go pump WSTL up to the instutional community and I will be happy for EFNT to trade at a discount to an obviously superior $275 Westell stock.