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

To: Johnathan C. Doe who wrote (13741)	10/27/1998 5:15:00 PM
From: bill c.	Read Replies (3) \| Respond to of 21342

All, Here are my concerns with Westell. Westell has BEL, BT and GTE-CLEC as ADSL customers. I think we all need to reverse hype these contracts as: 1) Short term contracts... not long term. 2) Which are going to lose money until mass deployment. Here is my view on the BEL contract. Westell is going to lose money on this contract until mass deployment. Mass deployment isn't going to happen until 2000-2002. BEL is going to migrate to a DMT solution in 1999-2000. BEL has an RFP out for DMT equipment... the winner of this DMT contract will be in position for mass deployment, not the present CAP winners "Westell and ALA/DSC". I've never seen Westell and ALA/DSC have an agreement on the DMT side. ALA is going to squeeze Westell off the DSC platform... CAP isn't a long term solution. Westell indicates that the customer is going to tell ALA who to work with. Well, when ALA starts giving the ADSL line cards away just to sell the Litespan units, how can Westell compete on price? The GTE-CLEC contract... Still sitting on that 50 modem deployment. The BT deployment... Westell/FTEL is sharing the contract with ALA. CAP isn't a long term solution, ALA is shipping DMT and WSTL/FTEL is shipping CAP at a loss. This has turned into a guessing game. How can any investor make a decision on the information Westell is giving? They are unwilling/unable to discuss ADSL-numbers/contract-durations/customers/break-even=#'s.. During the last CC someone asked a question about "is Westell still shipping modems to BC". Someone correct me if I'm wrong here, but I heard "you need to ask BC". The same question was asked 2 CC ago and Mr. Nelson told us they were still shipping modems to BC. Between CC did BC tell Westell not to talk about the initial deployment contract? Why should anyone believe that Westell will find the correct financing in the future? Marc indicated that they would do what's best for the shares holders. The Penny family trust is the largest share holder... "CLASS B SHARES". If this company goes bankrupt, would it benefit the LARGEST SHARE HOLDERS to claim Chapter 11? Claim chapter 11 and take the company private. The CLASS A shares will be terminated. What happens to the class-B shares? Will this company still be run by the Penny family trust after bankruptcy? Can the Penny family trust sell the company in the future after bankruptcy? Who makes the decision on additional financing? Can Marc make that decision or does it come from the board or from the Penny family trust? I've heard in previous CCs that Westell had other businesses to get them to mass deployment. Well it's obvious that those other businesses can't get them there, they need additional funds.... until later.