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

To: Trey McAtee who wrote (10820)	5/15/1998
From: Kevin Thompson	Respond to of 21342

Trey, you stated: <<company is in a good cash position, but they may need to raise cash for ramp. this, IMHO, will be considered bullish and will drive stock higher>> I'm pretty sure this is bearish, in and of itself. What they were basically saying was that they have 20 million shares that they want to sell to raise additional funds... I don't think they'll sell it just yet, but there's going to be a secondary offering in the near future to support the BEL contract. It's a shelf offering, which means they already have SEC registration completed, and the shares can be sold any day. Someone earlier asked why they had these additional shares registered, and speculated that they could be used to ward off a hostile takeover. Now we know the true purpose... On the positive side, if they issue more shares, and can use the funds productively, it will benefit all of us, and will probably reduce some of the big roller-coaster rides we've had in the stock as the float increases. Also, the big mutual funds will be able to participate in the stock to a greater degree, so I suppose in that way, it is bullish. Comments welcome. Kev