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

To: bill c. who wrote (8520)	12/22/1997
From: bill c.	Read Replies (1) \| Respond to of 21342

SteveG: Last quarter Westell generated 2Million on just 5,000 lines. Let's use your 20%, I get $400,000 profit last quarter for those 5,000 lines. Let's assume 150,000-200,000 lines for Westell's fiscal year 1999.. (April98-April99) I get about 12-15million profit for fiscal year 1999. With MASS deployment starting in Westell's fiscal year 2000, (April99-April2000). You are only willing to give Westell a 35% growth rate? I see a 50% or more growth rate...... until later.

To: bill c. who wrote (8520)	12/22/1997 12:21:00 AM
From: SteveG	Read Replies (1) \| Respond to of 21342

<..I'll start by saying, I beleive Forward concepts is WAY off. I can see the BA deal generating 1,000,000 lines by 2002.... Then of course you see Dataquest as being WAY, WAY off. And you may well be right bill. <Where did you get the $400/line cost...> Anticipated competitive pressures. <..Why am I getting $80/line after tax?..> You wouldn't. You'd get $80/line PRE-tax, and $40 POST.

To: bill c. who wrote (8520)	12/26/1997 2:27:00 AM
From: Trey McAtee	Read Replies (1) \| Respond to of 21342

steve-- >>SteveG: >> That's a total of 1MM WSTL lines from now until 2002 - this would yield a growth rate of about 35% (150K in 98, 200K more in 99, 275K more in 00, and 370K more in 01). Competitively at, say, $400/line. With 20% pretax margins - yielding approx $40/line after tax. So we may see $6MM (or .40/share) in profits in 98 (providing no other costs/charges), with a 35% growth rate. This would justify a WSTL price of $14 sometime in 98. And THIS is optimistic. First Call consensus estimates are actually for a loss in '98 of <.57> and a gain in '99 of .06. <<<< i simply can not believe you said this. the company is expected to lose money in FY 98. if it makes money the stock will go very high. 14 a share? not even remotely likely. thats only a p/e of 35. it will be much higher. good luck to all, trey