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

To: jeremic who wrote (8884)	1/12/1998 11:31:00 PM
From: sargent	Read Replies (1) \| Respond to of 21342

Steve G. is absolutely correct with his point. This is a one-time, extraordinary event that will be clearly separated from the true EPS number. If WSTL comes in .05 below expectations but the one-time gain from TI (of .10 per share, for example) swings them to .05 above expectations, this news will be viewed negatively. Regardless of how CNBC reports it (or should I say, if CNBC reports it), money managers as well as traders will do their due diligence (which will take about 10 seconds) before rushing out and buying 100,000 share chunks. The one-time gain of 14 million truly only affects the cash flow statement. It is shown on the income statement but is rarely a consideration as it is a one-time deal. If it were a 140 million extraordinary gain, then I would say we have something, since the market value of the company is only in the 200 million range I personally don't think their next earnings report is going to materially affect the stock either way, unless it is varies widely from expectations. This stock is trading on future potential earnings and contracts, as well as the (perceived)health of this technology. Still long on WSTL....

To: jeremic who wrote (8884)	1/13/1998 2:47:00 AM
From: Trey McAtee	Respond to of 21342

sargent-- as i said in my original post on this subject, they will need to make improvements in the operating profits and costs. of course if they come in below based on operations they are dead meat. but if they make some improvement, however minor, then the stock will go up dramatically when combined with the one time gain. at this point we just better hope they DO reduce operating costs and increase operating revenues and (hopefully) profits. funny how we have never really discussed the prospect of the company either beating or missing estimates when reporting time was near. is this a sign that we are starting to take the company a little more seriously as an investment, instead of just speculation? good luck to all, trey