Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Trey McAtee who wrote (9416)	2/20/1998 5:19:00 PM
From: Vladimir Zelener	Read Replies (1) \| Respond to of 21342

Trey, Netspeed if I remember correctly makes CAP modems and DSLAMs just like Westell. So their chips supplier is the same company as for Westell - former AT&T microelectronics and now called Teleglobe .. or something. The reason I asked about the modem price is because that was a major blow to Westel. Since RBOCs could not get a reasonable price from domestic ADSL suppliers they shopped around and found Alkatel, which promised $350 modem cards for mass deployment, plus DMT technology instead of CAP. When 4 Baby Bells announced their Alkatel commitment the price of Westell stock dropped from $50 ot $8. It did shortly rebound to $26 but now it is back to $13. Even if I shared the optimism of some people on this thread, that cable modems approach is not a formidable competitor to xDSL ( and I do not) even then I would be quite worried about Westel. 1. Modem card is quite expensive 2. CAP technology acceptance is quite questionable 3. New competitors from HDSL camp (PAIR and ADTN) are eager to get into ADSL business 4.Big networking cos. like COMS, BAY and ASND announcing their own developments in the ADSL field. Since I have a small long position in WSTL my only hope is buyout.