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


To: g.w. barnard who wrote (8567)12/24/1997 10:06:00 AM
From: bill c.  Read Replies (1) | Respond to of 21342
 
g.w.: Now that we clearly defined a formula for PEG:

((((#-of-lines * price/line * profit-margin%)/(shares-outstanding)) * GR%) * 100)

(((175k * $550 * 30%)/ 32-Million) * 50%) * 100) = $45/share PEG.

Everyone should plug their own numbers in. If you think Westell is going to sell 50,000 lines... fine... plug away. But understand the volume/price variable. I'm now going to look for URL's to support my:

1) #-of-lines
2) price/line
3) profit-margin
4) GR%
5) volume/price variable, which isn't included, really it's a combination of (#-of-lines * profit-margin)

PS. Let's not forget that Westell has profits in non-ADSL, , future-HDSL, TI {slim-jack}, etc... until later.

PS1. To All - Have a good Holiday.