I have only been following this stock for a short while so, I am still getting up to speed. I bought some shares higher, than here, so my opinion is biased toward trying to find reasons for the stock to move to the upside. I don't know if you are long or short, on the sidelines or a trader.
20 mil. is a serious piece of change. But as others have been saying, a buy out is possible, or as I have been saying, locking in a large forward sales agreement to a major customer, through a significant reduction in price, by giving up some profits, could at least buy WSTL some time.
If WSTL is successful in up grading their manufacturing productivity, then larger contracts, with tighter margins could become their new model.
My hope is for WSTL to sign up some forward contracts in here. They could take the agreements to the bank, for an extention to their line of credit.
In terms of the stock price its already pretty low, I would think any truly positive news would raise it.
On the other hand if WSTL makes no progress on securing the 20 mil., then obviously the stock will get cheaper.
I don't know that my plan for a large forward sales agreement, that contains lowered profit margins as the hook, would have to cause an adjustment down in share price. For one thing a certain amount of the stock’s softness has to do with uncertainty. If you get the ADSL side of the story looking like it will move forward again, this takes pressure off the other divisions, and so their true value can be reflected again in the stock. Don't forget broadband to the consumer is starting to be pushed hard. AT&T with their cable ads, and Verizon with their DSL ads.
What did Bill Gates say the other day on CNBC, the world needs more broadband now. Obviously his more advanced products present and future, are being held back, because of the lack of broadband roll out, in so many locations still. Gates also wants to see a reduction in broadband fees, that will happen when the providers are able to offer additional services that they can charge for, to off set a reduction in the basic connection cost.
So it is really to everyone’s advantage to get the broadband that can be put in place now, going again.
Providers still have the optical end solution to pay for, you would think the plan would be to get DSL in place and generating additional fees and growth in broadband services, to help pay for the present and future optical developments.
Again, if your trying to capture and keep customer's on your developing broad band system, you are going to buy the dependable product with superior quality over long distances, or risk dealing with service headaches and bad word of mouth, which just caused you to waste the millions of dollars spent in multimedia ad campaigns, and jepradize the loyalty of an ongoing relationship with a broadband customer, that you want to develope into a one stop, multi service buyer, = future cash cow.
I am playing this situation one day at a time, actually I bought this stock for a trade, and let myself get caught, because I didn't have time to trade. Non the less I find the situation intriguing, as I have a small passion for getting broadband out there. Also timing wise I felt DSL would pick up again, as the building block it represents on our way to converting up to the 21 century infrastructure.
Another idea would be for WSTL’s upper management, officers and directors to forgo a certain percentage of their stock options, until times are better. WSTL could then go ahead and issue additional shares, knowing those options, could not come into circulation, to dilute the stock.
Another idea would be to form some type of collaborative partnership with a contract manufacture, so that it would be in the interest of the contract manufacture to put the time in to getting WSTL’s standards right. This would give WSTL an inhouse and outsourced stepped up manufacturing ability. The collaborative relationship with a contract manufacting partner, could also allow WSTL to divert some funds away from the cost of up grading exist inhouse manufacturing. |
