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

To: Kevin Thompson who wrote (12023)	7/11/1998 12:32:00 PM
From: Neal Hopper	Read Replies (1) \| Respond to of 21342

OK Guys...Let's try an exercise I am not hyping this stock. I just want to discuss why this stock l @ $9 isn't a freakin unbelievable buy One condition to the discussion.... wstl gets part of the BEL DMT with DSC/LU YE 99 Assumptions 1) BEL wires 100 COs 2) 200,000 adsl line installed Let's forget about the Lucent's resell agreement Let's forget about any ISP work OK let start at the topline..Here's last years # Revenues DS0 5,235 DS1 52,481 DSL 12,448 Services 14,145 Total 86,351 Outside of DSL rev would these numbers change next year??? How stable should the DS1 rev be next year???? I will take a poke at next years DSL #. I will for the sake of arguement ignore the CO rev.. 50,000 lines x $250 per line =$12,500,000 100,000 x $250 = $25,000,000 Anyone one with an assumption on what revenues for DSLAM might be pitch in. I say $12,500,000 mill on a per line basis

To: Kevin Thompson who wrote (12023)	7/12/1998 9:27:00 AM
From: Zephod	Read Replies (2) \| Respond to of 21342

Kev; I have to respectfully disagree on a couple of points. >>You mentioned that WSTL hits resistance at $10 cuz G.S. is selling...Truth is, this stock has very low volume, and is simply being battered about by the winds<< What you say is true about the low volume but the reason the stock got beaten down from 11-12 to the 9 area in the first place was a direct result of sales by GS. I calculated he's sold more than $5M worth of stock so far this year. As I mentioned in an earlier post not only do you get the immediate drop from the large blocks (60K shares per shot) but there are other immediate & lingering effects just one being the perception that he knows something and is unloading prior to some bad news. A theory I don't subscribe to. >>I also disagree that an acquisition is coming anytime soon... Maybe you folks believe it, but the rest of the world sure doesn't<< I think the company will be bought out fairly soon. Most people blame Westell management for the low stock price. I happen to think that the problems facing Westell now can be blamed on forces pretty much out of their control. The 2 most damaging being the lowball bid by ALA for the JPC & misinformation about the availability of mass market DMT chips. I also happen to think the guys running this company are pretty sharp, all it takes is a glance at the list of partnerships Westell has forged. My own personal assessment of their current market situation leads me to think that management must have come to the conclusion, if not before certainly after the ALA/DSC merger, that Westell will have a hard time competing with the likes of CSCO & ALA. I think Westell's management realizes now is a good time to leverage their expertise by aligning with a larger co before all the big DMT contracts are signed. If they wait they could lose everything. The company has a window of opportunity, a near term premium for their products, industry expertise, etc. which may evaporate in a few months. >>Anyone with even an inkling of intelligence that thought WSTL would be bought out at $20 or whatever would be buying the stock at $8 or $9. Let's face it- no one else truly believes that. It is pure fantasy<< I think Wall Street has missed the ball on this company & I'm not sure we can use stock price as a gauge as to what is happening with the company. I think DR Tech is right about these **ck-less analysts...where were they when Amati went down into the 7's, giving it a market cap of less than $110M, TXN paid almost $400M for the co just a few months later. I happen to think Westell's products, employees & expertise with telcos for integration of ADSL into their networks is worth much more than the current 330M market cap. Markets & valuation are efficient over the long term & can be very inefficient in the short run, this being a case in point. I think the value in this company is there & I think some other co will see this & take the opportunity to get into what TXN thinks will be a huge market in the next several years. Furthermore I think Westell's board & management see the DSL landscape w/gorrillas like CSCO & ALA eroding margins and will take the steps necessary to guarantee they will have a place in this market, which IMO is integrating their employees, products etc. into a larger co w/deeper pockets. I think you'll see either an acquisition or at minimum an equity stake before BEL DMT. JMHO.