Who supply's the equipment when the Telcom carriers roll-out their Broadband infrastructure?
Yeah I know Motorola, Ericsson, Qualcomm and Westell.
You probably know the first 3 but Westell!
Well compared to the big players Westell is focused on Broadband, Media Integration, VoIP and IPTV all services that are experiencing explosive growth:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=2758;image)
Westell provides equipment to SBC, Verizon, British Telecom, Belll South, Qwest, Sprint, MCI to mention a few. A solid customer database and the boxes they deliver are pretty sexy.
They obviously have the usual stuff like DSL (they have delivered 10 million of DSL devices to their customers), WiFi hotspots, routers etc. but try to have a look at their Media Gateway
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=2759;image)
Ever wondered what the future of Telephony would look like? You are looking at it!
This beauty provides you with:
Digital Cordless speakerphone
Choice between using conventional POTS and VoIP
Wireless and wired network
Video Telephony
Video Conferencing
Standard Windows interface
Full Internet Access
The list goes on......
The gateway is developed together with carriers and is about to be introduced by Verizon as Verizon One.
All Telco operators are looking for ways to differentiate their broadband service and at the same time create loyalty. I hope we will see some aggressive pricing on DSL packages combined with the media gateway. If marketed correct the gateway would lock the customer into not only the operators DSL service but also their least cost routing options including VoIP, and IPTV and Video conferencing.
The media gateway is however not the reason for buying WSTL but rather icing on the cake. Their solid broadband business is the core of the business.
The company is traded at a forward PE 9.9, which is significant lower than their peers. The stock dropped 33% last week after Q1 earnings and outlook for 2005 disappointed the market. The Q1 showed a 24% increase in EPS per share to 10 cents compared to the analyst's expectation of 11 cents. The revenue increased with 35% compared to the same quarter last year.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=2760;image)
The main reason for the drop in share price was the outlook for next quarter when the company expect earnings of 3 to 4 cents. They cite seasonal weakness and pricing competition.
I think that the correction is overdone. The company is profitable, has essentially no debt, a solid customer base and is operating in spectacular growth markets.
I have therefore bought WSTL today at 4.15 I would expect a reversal in the days to come.
WSTL is mentioned in today's bulletin from greenbackers com:
QuoteJuly 25, 2005 9::09am est
attracted to:
WSTL rebounding pattern taking shape....double two day bounce off of 4.10 worth noting......upping 4.35 initial target to 4.45.....entry immediate / 4.27)
Not the most prestigious newsletter around but with a good track record.
There is also a message on Yahoo that Fio, Burzovni Spolecnost, AS has a speculative buy on WSTL:
QuoteLondon, July 25 (Bloomberg Data) -- Westell Technologies Inc. (WSTL US)
was rated ``speculative buy'' in new coverage by analyst Radek Neumann at
Fio, Burzovni Spolecnost, AS. The 6-month price target is $5.40 per share.
I have not been able to confirm this (Anybody know Czech ???)
We ended the day up (4.24) and a new bottom at 4.19 has hopefully been confirmed. There is no resistance until 4.94. Will be exciting to see the trading tomorrow. I would like to see higher volume.
Verizon has updated their web site with Westell's gateway. Sure looks nice: https://www22.verizon.com/verizon-one/
hmm.. sure looks interesting!.. this one is heavily oversold and outside the lower boilingerband.. think it will rebound soon
im in at 4,30.. let's see if this baby can bounce 8)
the bottom of 4.19 isnt holding at the moment :(
Hi Nikao,
Well today is not the day for the rebounce. I am actually a bit surprised. We had some good news from Verizon and Microsoft.
One of the things that attracted me is the limited risk. I still hope that 4.19 will hold. The analyst target after the disappointing Q1 is 5.00 so there should still be room for a nice increase.
I will sell if it goes through 4.10.
so it recovered a little in the last 5 minutes from 4.09 to 4.14.. guess I will hold this, can't imagine this one going further down without bouncing up.. (it's not forming a bearish flag .. so thats good isnt it?)
Hi Nikao
I decided to stay in as well.
I sometimes use Stockconsult as a guide when I am in doubt (as I do not have a direct line to David and eliteG (http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=2800;image))
Here is what they write about Westell:
BULLISH
- Probability - Intermediate trend possibly bullish, Sideways trend near lower support.
- Probability - Extreme Oversold, odds definitely favor long trades.
- Probability - Short term extreme pullback, expect pullback to pause/stop.
- Confirmation - Extreme 3 day distribution, but when the stock is oversold this is considered bullish.
- Confirmation - Extreme bearish 1 day moneyflow, on an strong-extreme pullback is considered bullish.
- Probability - Strong Down trend (1 month), may start to turn sideways.
- Confirmation - at support
BEARISH
- Probability - Mild bearish 3 day chart pattern.
Have a look at the full report: http://www.stockconsultant.com/consultnow/basicplus.cgi?ID=sample&symbol=WSTL&12063#ttop
And another day of slightly going down... im still in here cause every time I look at the chart and I see this HUGE gap down, I can't believe it will go down further without pulling back a little
Yes its resting at the support but after a tremendous gap, I think there may be more down side to come. However, for WSTL to be 'BUY' it need to close above 4.3 with atleast avg. volume. I will watch this one.
mike, need your input on AMPX.
WSTL printed a nice little tiny hammer ;)
Hope it will hammer out 4,19 again to make that support again. After that we're good to go (up that is! ;) )
hmm quite some after hours buying (this is only for INET!)
17:30:07.559 S 28,000 4.1400
17:29:31.815 B 28,000 4.1400
16:16:44.238 S 3,500 4.1300
16:02:04.637 B 1,000 4.1800
16:00:42.951 B 3,500 4.1800
what to think of this? ::)
and another (failed) attemp to break the resistance at 4,19
we're closed in a tight range, time to break out! (up of course ;) )
WSTL is moving in a very tight ranged price channel currently..
If it can test resistance around 4,14 again it would be showing the same pattern I mis-traded in GTCB (a mirrored ascending triangle)
Since I think it can go and test that resistance I'll patiently wait so I don't miss a big white candle as i did in GTCB
WSTL showed us a nasty candle below the descending price channel
Since the volume is still well above average and the stock is oversold I'll keep the stock.
My feeling says it will rebound soon, and the last weeks I learned not to ignore my feelings 100% .. so I'll keep the stock for now :)
WSTL printed a nice white candle today..
But I'm afraid this was more a correction for the day before than a real turnover..
I think WSTL just has to go a little lower to bounce back up. (somewhere near 3,58 as bottom)
Hi Nikao
Yeah it seems like the reversal is taken a bit longer than we expected. (http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=3072)
I am however still optimistic. WSTL are ideally positioned to take advantage of the VoIP and wireless network growth with production in Asia and most of the large carriers as customers.
I found some new research about the growth:
QuoteAccording to researcher In-Stat, the market for home wireless networking equipment is expected to grow from roughly $9 billion in 2004 to $21 billion by 2009. The home wireless networking market is now dominated by the 802.11g standard, which grew from an installed base of 24 million home networks in 2003 to 37 million in 2004. Two areas that have yet to take off with wireless home networking, though, are streaming multimedia files and storage. The study also notes that growth of VoIP is helping to fuel the growth in wireless home networking.
Looks good (http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=3073)
get ready for the big move!
Symmetrical triangle is forming with volume drying up.
Since a Symmetrical Triangle has no bias for direction you have to look for other signals.
When I look at the chart itself with the HUGE gap down and with the RSI still in oversold territory I expect the stock to move UP
well.. it seems WSTL is forming an ascending triangle instead of a symmetrical one..
This is even better cause an ascending traingle does have a bias... and that's up!
Volume still drying out as it should be and we finaly closed above the 9MA.. all looking good!
Wow!! that's what i want to see on WILDER's DMI(ADX)
--> ADX in bottom & +DI(13) on top... hmmmmm. i'll be watching this one ;) :D ;D
Keep an eye on WSTL @$2.2. It will make a big move this month. It has $1.25/share cash and is being rumored as a certain acquisition company.
An interesting fact. Deutsche Bank has increased its holdings by 4M shares in the last institutional report. That is about 6% of the outstanding shares.
http://www.nasdaq.com/asp/holdings.asp?mode=&kind=&symbol=wstl&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&FormType=Institutional&mkttype=&pathname=&page=holdings&selected=WSTL
TARGET: $6 IN 2008
$1/SH CASH.....NO DEBT....$2.2/SH STOCKHOLDERS EQUITY...SMALL FLOAT.
- HUGE ATT CONTRACT RECENTLY WON, SHIPMENTS TO START IN JANUARY 2008....
- ALL MANUFACTURING IS NOW DONE OVERSEAS TO IMPROVE MARGINS.
- ANALYST ROBERT BAIRD HAS A $3.75 TARGET AND OUTPERFORM RATING.
- FREQUENTLY RUMORED AS AN ACQUISITION CANDIDATE
- SCOTTRADE DOES NOT ALLOW PURCHASES ON LINE BUT WILL PLACE ORDER AT INTERNET PRICES ON THE PHONE. PURCHASES TEMPORARILY RESTRICTED TO PREVENT MANIPULATION DUE TO SMALL FLOAT.
WSTL is already priced for a loss because the current guidance calls for it for the quarter ending 12/31 and to be reported in January. However, guidance for the 4th quarter will be very strong due to a combination of shipments to ATT commencing at the start of the quarter and the fact that the transition to outsourcing manufacturing is now complete
Last month WSTL announced that it has been selected by AT&T to provide ProLine™ modems to AT&T's 22 state region under its Hybrid DSL program. Shipments of product under this new agreement are anticipated to begin in early 2008.
"Winning this business from AT&T is a very positive step for Westell and a validation of our position in the marketplace."
It allows us to expand the reach of our core CNE business within the new AT&T, while continuing to develop innovative products for the next evolution of broadband services," said CEO Mader.
Shipments under the new contract are expected to commence in the fourth fiscal quarter ending March 2008.
WSTL made a $2.5 million investment in Contineo Systems, a Plano, Texas-based software developer, for a 40% equity ownership position. Contineo develops communications security software solutions to enable broadband carriers to maximize revenue from existing customers. "Through this investment, Westell enhances its efforts to improve product innovation and speed time to market," said Mader.
With the launch of the Ultra Line Series3 WireSpeedTM router portfolio, Westell is ideally-positioned to serve the emerging IPTV and Fiber-to-the-Home markets with best-in-class routing performance for video and high-speed internet services.
"The manufacturing outsourcing strategy that was announced in May is on schedule. ...Our products are now completely manufactured by our manufacturing outsource partners overseas."
"The anticipated results of outsourcing are expected to reduce costs while maintaining Westell's reputation for quality products and services."
"A relentless focus on execution continues to drive our restructuring efforts under the five-point plan I outlined earlier this year," said Thomas Mader, Westell Chief Executive Officer. "These results reflect our renewed investment in research and development, the outsourcing of Westell's manufacturing and exploration of new markets for our broadband products."
Big chunks of WSTL are now being bought at the ask.
Learn to use the search!!! ::)
"WSTL" Threads have been Merged.
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders. ;D
All history on a stock pick in 1 thread is awesome. ;)
Just trying to get threads together,so we don't have a numerous amount floating around on the same stock. :( ::)
Thank You....and good luck with all your trades....make some $$$ ;) ;D
The "January Effect" will be huge for undervalued WSTL
- $0.8/share cash. take a look at this solid balance sheet:
http://finance.yahoo.com/q/bs?s=WSTL
- Major contract with Verizon's FIOS is starting to get traction. Guidance calls for 25% revenue increase for this quarter compared to last year and 35% higher than the previous quarter.
- WSTL will generate over $200M in revenues in 2009. market cap is only $20M!!!
- Analysts' 12-month target is $2.5
- Experts call for major broadband expansion in 2009 and beyond. WSTL is a low cost, high quality player in this sector.
- Heavy insider buying in the 90c+ territory:
http://finance.yahoo.com/q/it?s=WSTL
- No neart-tern delisting danger. NASDAQ has extended its stay on under-$1 delisting proceedings until late April 2009 due to current market conditions. By that time WSTL will be sailing well over $1+
About WSTL:
Westell Technologies, Inc., through its subsidiaries, develops and sells broadband telecommunications access products and conference services in North America and Europe. It operates through two segments, Telecom Equipment and Telecom Services. The Telecom Equipment segment designs, distributes, markets, and services a range of digital and legacy analog products used by telephone companies and other telecommunications service providers, such as mobile network operators, multi service operators, integrated carriers, and utility providers
WSTL is poised for a breakout
WSTL $0.34 UP 12% STARTING TO RALLY..TRADING AT 40% OF CASH...0.1 P/S 9 second(s) ago - HUGE CONTRACTS WITH ATT and VZ KICKING IN.
- 30% REVENUE INCREASE GUIDANCE.
- STRONG BALANCE SHEET WITH NO DEBT
- BROADBAND EXPLOSION EXPECTED IN 2009 AND BEYOND
- CONFERENCEPLUS DIVISION EXPLODING AS COMPANIES CUT BACK ON TRAVEL
*** I GAVE YOU NTWK AT 60C ...IT IS TRADING AT 97C NOW...THIS IS NO COINCIDENCE...JUST HEAVY DD ON UNDERVALUED/SOLID COMPANIES..****
Nice move today. Still very cheap at 40% lower than cash and with a huge quarter to be reported in about a month (guidance calls for over 30% growth when most companies are shrinking). Lots of room to move up. Next resistance will be 75c or so.
http://stockcharts.com/charts/gallery.html?ntwk