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

To: Scotsman who wrote (21133)	6/4/2001 11:07:58 AM
From: Shaw	Respond to of 21342

Scotsman, from my perspective you have to have some sense of the growing value of broadband, and even the lower end, DSL and all its various evolutions, ADSl,DSLAM,VDSL,HDSl ect, to be interested in this stock. When I bought in a few weeks ago, I did so based on the idea that broadband was here to stay and ADSL was the vehicle that would carry a large amount of the broadband experience for homes and small and medium size business, until the optical highway reaches the same customers years down the road. As far as the the profit end of picture goes, it depends on the level of demand, right. My thesis is that demand will return, and grow stronger. Look at Bill Gates the other day on CNBC, pounding the table for greater access to broadband. Obviously the bandwidth bottle neck is holding back the roll out of advances in technological products, that only run on a broadband system. The obvious the risk is for WSTL's ability to hang in , until demand returns. One would think that because of WSTL's superior products, they should be able to structure collaborative agreements with large customers, and contract manufactures, that would bridge them through this period. A possible plan would be to negotiate commitments for large orders going forward, by offering historically reduced costs to the customer, then create a collaborative agreement with a contract manufacturer, where you agree to throw them the large amount of forward order business, in return for, lower per unit manufacturing costs. Stipulate quality, and produce in house, those aspects that aren't being produced well enough, by the out source manufacture. Also go after more business over seas, especial where competition is less. Dump current inventor in third world markets, where there is a demand, for technology. Bottom line Scotsman, I think you have to be a bit of a pioneer in this one, and develop your own sense, on how realistic a turn around is.