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

To: Trey McAtee who wrote (10390)	4/28/1998 7:20:00 PM
From: Radam	Respond to of 21342

For those of you who believe WSTL may be purchased someday, consider what Lucent paid for Yurie. This may give you guidance when trying to predict what a company like Lucent may pay for a company like WSTL. I've copied below a few paragraphs from today's New York Times article: The deal was an enormous payday for Yurie, a Landover, Md., company that was founded in 1992 and went public in the winter of 1997. It has about 250 employees. Last year, Yurie earned $6 million on revenues of $51 million. Securities analysts said Lucent was paying a rich price, but not one outlandishly out of line with similar purchases in data networking. "Based on their first-quarter revenues, Yurie is on track to do about $100 million worth of business over the next 12 months," said James P. Parmelee, an analyst at Deutsche Morgan Grenfell. "Typically, the purchase price of leading-edge technology companies is five times to 10 times 12 months' forward revenues. This deal is at the high end of the range, but it is not without precedent." Despite the price, analysts said the purchase made a great deal of strategic sense for Lucent.

To: Trey McAtee who wrote (10390)	4/28/1998 7:42:00 PM
From: DR.TECH	Read Replies (3) \| Respond to of 21342

Redbank deal enables Westell customers to stack multible Dslams in a CO and provides are more efficient and lower cost per line. The industry is moving in this direction. Westell has been working on this and probably has a six month lead. For your info....Mr Seamens is gone and he is doing what most retired people do diversifing. No biggy he still has approx 1 mill. shares. Also, I am not expecting any particular analyst to be a hero for Westell... Most are gutless. However, any of these internet analyst's that have been rec. YHOO,XCIT,AMZN will be wrong if the industry does not deploy broadband services. They will deploy, and when they do, the sheepish analyst will rec westell in the 20's. BEL will deploy in PITT first...followed by BALT-WASH....Maybe the GTE's wish announcement has moved the BEL time frame up a notch. Las Vegas should be interesting westell will be demonstrating DMT equipment. Also first show with their DMT/CAP DSLAM. For you trader types all real volume in westell has been on the upside not the downside. For you fundemental types remember when the chips are ready you will see orders, deployment and gutless analyst to follow.