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

To: Trey McAtee who wrote (8587)	12/27/1997 8:22:00 AM
From: bill c.	Read Replies (1) \| Respond to of 21342

Trey: >> First Call consensus estimates are actually for a loss in '98 of <.57> and a gain in '99 of .06. <<< First Call still hasn't computed in that 15 million dollar modem that Westell sold/lost to TI. Let's ignore that for now, since First Call has. If First Call thinks Westell is going to lose $.57 in 1998 and gain $.06 in 1999, lets compute the revenue gain for Westell in Fiscal 1999. The gap between <$.57> and $.06 = $.63/share. Westell will gain ~$.63/share more in 1999. We have ~36.5 million Westell shares: 36.5 * $.63 = $ 22.99 Million is after TAX revenue GAIN for Westell.. Wait... Westell fall's into the 50% TAX rate so; $22.99 million * 2 = $46 million before tax gain, with Westell falllng into a 30% profit margin: 153 * .3 = 46million $153 Million in NET revenue GAIN for Westell in 1999 above their 1998 NET revenue of ~80Million. Westell's REVENUE will double from Fiscal year 1998 to 1999. Westell is a growth company in a growth sector, that's why one invests in Westell. I agree that PEG SHOULDN'T be used against Westell... until later.