I have to think that Cooper knows the software revenue will come soon. They can't build the dollars into their model / forecasts until they get an addendum to their contract. Gilbert has said that he would not grow for the sake of growing. He stated that he would not chase revenue.
What bothers me more than anything is the press release. I've always heard that a lot of the trading around Westell is done by computers that get in and out quickly. My guess is that poor press release panicked some people and then as they stock went down, it triggered sell orders throughout the day.
Hopefully people will go back and listen to the conf call and hear Gilbert say that the plan is to be profitable in each of the next two quarters. He even repeated that.
Here's a company with .80 in cash per share trading at 1.30. Makes no sense. I agree with you and Phenne - sell the company if you cant manage the share price. That's all I care about.
I agree...Cooper and Gilbert have to know a lot more than they are saying about this software play....There was times on the call today that I had a feeling they wanted to say more but couldn't.
Also the talk about being profitable for the rest of the year, and the fact that Gilbert thought it necessary to repeat, and having a nearly 6 month backlog means a lot to me...You don't hear or see many companies giving guidance or talking about visibility out that far....You basically have to know something to be that bold.
I did find it intersting that on one side Gilbert talked about "softness in top line" but also mentions having an "order backlog" of nearly six month and than later they made mention that they are taking market share.
I think that is a strange combination of statements especially since it now looks like Verizon is now on another promotional involving the quadruple play..I received an add in last Sundays paper and saw a new TV spot during the Yankee-Angels game last night....This would be in the Northeast and right in Actiontec's area...If Westell is taking market share what area is it coming from???..and is it because of product superiority, manufacturing capability or is it something as simple as somebody just not being able to take the heat???...I think we need a better answer on the market share question.
As for the stock action, yesterday seemed a bit programmed for me...It was like a price target was set between about $1.20 and $1.30 and that was it....There were over 3.5 millions shares traded yesterday and they all wanted in or out in rougly the same 10 to 15 cent area???...I don't think so....Also of note was the down times during the day where there was no trading at all going on...There were times yesterday where 5 to 10 minutes would go by without a share traded....Not the kind of minute chart you would expect from a stock down 25% on 7 times volume....Just my opinion on a few observation from yesterday.
As a stockholder, I give Gilbert rate of 3 or 4 out of 10. He just blew it out on our face. The company is making money and there is a backlog! Why did he cause the stock to slip 25%. He should be written up for this act. One more like this he should be out.