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

To: Dug who wrote (15513)	3/25/1999 9:07:00 PM
From: Mad Bomber	Respond to of 21342

[Response] Follow up to: Do you still stand by your "BUY" on WSTL? They have consistently lost shareholder value since '96. Why are they so secretive about contracts considering their obvious need for new financing? What are the chances of Penny & Simon letting the company bleed and then taking it private? Answer 1 (3/25/99): Yes...for long-term accounts! The value of the enterprise is at least $10-12 when you look at the business as a whole. Management is focused on managing the business on a more balanced basis. It is possible that management would drive the stock down and then take the Company private, but Penney is too committed to his employees--I believe--to take that approach. I've always maintained that WSTL is worth at least $12 a share and I continue to stand by my analysis. Joel Achramowicz Senior Market Analyst ******************************************************** Previously, in your report, you valued CPI and TAP business at 4$ without DSL. Does that mean that you value DSL business at 8$ to equal 12$? If so, why is the market valuing the DSL business at 0$ or even negative $ assuming 4$ for other businesses? You commented previously that BT trials with FUJITSU were going well. How do you see the suspension of trials by BT affecting revenue prospects there? Also, why would WSTL layoff 90 workers if they needed to ramp up for Bell Atlantic and other possibilities? Could you shed some light on where those layoffs are occurring (marketing, engineering, or manufacturing)? Do they expect to do all DSL units through Dovatron (any margin there)? Are there any WSTL tie ins to all the Lucent 5ESS switch sales to BEL, SBC, BellSouth, etc.? There has been almost zero news concerning SLC2000 sales with WSTL integration. What about ICG/LU/WSTL connection? A long term investor needs more to go on than increasingly negative ROI and zero information on future revenue. The only way to find out who WSTL sells to right now is to look at major customers on the annual report which consist of US WEST and Ameritech from my recollection, obviously not DSL revenues. I would appreciate some concrete reasons to keep my investment in this company. The company refuses to release information to its minority shareholders and you are a last resort. I will be researching minority shareholder rights shortly. Thanks. MB