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

To: matt gray who wrote (14502)	1/5/1999 4:49:00 PM
From: Trey McAtee	Read Replies (2) \| Respond to of 21342

matt, charlie and all-- a few thoughts on equipment supplies. the modem business is cut throat to say the least. the only reason USR is even around is that 3com doesnt want to let the brand die and have done a lot of marketing. modems are modems, eventually all the production will go to a low cost producer, like a taiwanese shop. now, i have not looked at com21, but if the stock has gone up because of the rev growth, we may see something similar with WSTL should BELs deployment be as agressive as we anticipate. now, this would represent a huge paradigm shift for the investment (wstl turns from an also-ran modem shop to the premier supplier of modems for the huge BEL rollout). that being said, it would also be a false paradigm shift. at the end of the day, profitablity is the only important yardstick. and i dont think they are going to have much of it for any significant amount of time. good luck to all, trey