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 (11290)	6/4/1998 9:26:00 PM
From: bill c.	Read Replies (4) \| Respond to of 21342

Trey: I agree that Westell is undervalued, but with the knowledge that BEL has an RFP out for DMT equipment may justify Westell being ~$11/share. Losing the initial JPC contract, BC, USWest, GTE-ILEC, BT pushing out deployment into 1999, two top exec's leaving, MOT 16 month delay, losing money for the next 4 quarters, and now the DSC/ALA news is pretty depressing. Add in GTE-CLEC's smashing 50 modem deployment, I'm surprised Westell isn't valued a $9/share the value of the TAP business. If BEL can switch to DMT, so can BT. In a few months/weeks Westell will have a DMT solution. I don't know what else to say.... until later.

To: Trey McAtee who wrote (11290)	6/4/1998 11:32:00 PM
From: Yakov Lurye	Read Replies (2) \| Respond to of 21342

Trey, My experience with RBOC planners (and I'd worked on various projects for several RBOCs, including NYNEX and Bell Atlantic) tells me that RBOCs always end up with multiple suppliers. The strategic advantages of maintaining viable competition between equipment manufacturers tend to outweigh the operational benefits of having uniform equipment across the network, be it in switching,transmission or distribution. This is why interoperability and standartization are so high on the RBOC priority list. Therefore, ALA/DIGI deal does not mean that WSTL will be driven out of business, as long as they maintain working relationship with LU. This is virtually guaranteed by the huge installed base of LU CO and carrier products. In the same time, I don't see any urgent need for LU to buy WSTL and judging by today's trading, ALA/DIGI deal is clearly viewed by the financial community as being detrimental for WSTL. An unfortunate turn of events for WSTL longs considering that we may still see a broad market selloff. On the other hand, things could be much worse - at least the sector as a whole got a lift and LU takeover speculation could lend WSTL some support. Regards, Y.