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

To: SteveG who wrote (8499)	12/20/1997 1:17:00 PM
From: Ahmad Ascha	Read Replies (1) \| Respond to of 21342

Steve very nice analysis. Ahmad

To: SteveG who wrote (8499)	12/20/1997 1:35:00 PM
From: Trey McAtee	Read Replies (2) \| Respond to of 21342

steve-- just as i am leaving for christmas you hit me with this<G>! i will have to resond to most of it on either sunday or monday. our FY started in september. as of right now its only up about 10%, mostly because of the loss in WSTL and the gains on puts we had going into the october selloff. needless to say, i am not too pleased. some of the stuff we have has held up well considering, although the PRMO deal is quickly becoming annoying. i guess i am juat going to have to send you a copy of my ID so i can prove my age. is your impression of all 23 y/o people derived from reality bites or something<G>. good luck to all, trey

To: SteveG who wrote (8499)	12/22/1997 11:38:00 PM
From: Trey McAtee	Read Replies (2) \| Respond to of 21342

steve-- sorry i wasnt able to reply earlier today. i am in athens, where my parents live and some jacka_s cut the trunk line between here and dallas. the INTC/MSFT hegemony did not become reality until the 486 and win3.1. dell had been in business for years at that time. up until the early 90s even apple could have dominated the business market. they chose to focus on education and creative enterprises. i hope whoever wrote that business plan is not working anymore<G>. dells sucess was based more on pricing and quality that anything. granted, in the late 80's early 90s wintel was dominate, but at that time ibm could have easily unseated them. they chose not to and the rest is history. the market for xDSL is a little more complex. telcos historically will pay a higher price for quality and reliability. heres the thing. they also want standards and interoperability. this is basically so they dont have to be dominated by one supplier (an interesting side note....this is also the reason we will have IBM, AAPL and NOVL). so all equipment must be based on standards. well, for the patented technology to become a standard it must be licensed to all players at a reasonable rate. this mitigates the true value of IP, which is the ablity to squeeze your competitors with technology that is better than theirs. in the case of DMT xDSL, the profits from the patents, and 1.50, might get you a copy of the sunday AA-Statesman. now, as for unbundling, deployments etc. decisions on tariffs will be released soon. the decision to deploy has already been made. the SC decision will likely be to give everyone access, if this is the case, they will loose cusotmers if they dont have something extraordinary to give them...xDSL anyone? as for our larger competition, it makes more sense for them to buy us than to compete with us. in a very few years, this is going to be a company with a billion$ in sales per year. it would be easy to pick us up for one times future sales and get the deal signed two weeks or less. now, on to price points. we have a pretty good idea of at what price there is demand . there is a substantial amount of market research available to aid the telcos in their decisions. ISND price is too high, but too many people for POTS pricing. indications are for 50-75$ per month will be the mass market. i understand a need to look at the downside as much as the up, but when you start looking from different perspecitives, it becomes clear that the downside isnt quite as obvious. so, we know the pricing...intitial will be higher, but it will go lower. competition will be better served to buy us than try to stop us. whats left? good luck to all, trey