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

To: Vladimir Zelener who wrote (12720)	8/17/1998 1:47:00 PM
From: Trey McAtee	Respond to of 21342

vladimir-- i dont think thats it, but i also do not think it is out of the realm of possibility. as for possible acquirers, we have been through this so many times i feel like i can regurgitate on command...here goes... 1) ala...they havent done well with the JPC and their current strategy indicates a head on assault against LU and nortel. i think ADSL has become a nuisance to them...witness the DSC meger. i think they may buy WSTL and fard everything out to us. this is interesting in that it leaves serious questions about TXNs relationship with WSTL.additionally, a takeover of WSTL would give ALA a complete switch and DLC solution. the LU switch solution has to be worth a lot more than the current value of the company, especially to an LU competitor like ALA. 2) LU...ok, they can bring everything in house, and they would have a captive market for their chipsets. this also leaves questions about TXN/WSTL. the biggest thing here is that they might buy if for no other reason than to keep ALA away. 3) COMS...doubtful. they just dont have it, and their stated focus is on the consumer end. now, if they are looking for inroads into telecom WSTL might not be a bad partner. 4) TXN...to keep LU and ALA from taking what will likely be TXNs biggest customer for C6 chips. it could play out this way...ala makes a bid, which is then countered by LU, then a bidding war starts. ala could cut a deal with TXN to let them in on it and keep WSTL using C6. ericy could come in and upset things. thats the problem with merger speculation. there are so many variables, and it always seems like the least likely is the one that happens. i'll be honest with you here...i would not buy on merger speculation. this move up may have something to do with the max pain thing i was telling you about last week. if it stablizes around 8, that will be what it was. good luck to all, trey