Don't fool yourself ....Kentrox is figured in...If Kentrox had hit $10 million in revenue last quarter versus $3.4 million we would be in the $5 buck range right now.....I think most investors have factored that in last quarter and I think expectations are being down played for this quarter...Anything with Kentrox over $5 million is a bonus here.
As for Westell and CSI divisions there are greater expectations...They should be able to hit better numbers as they push into DAS and small cell....If they can't then there are real questions...This should be a strong quarter as telco budgets are usual in full motion by this point.
If Kentox somehow hits $8 to $9 million then the stock will take off like a rocket....Technically we are extremely oversold.
Kentrox is figured in...Anything north of $5 million I'll take as a plus....The Westell and CSI divisions I expect to have good numbers. $28-$30 million should be doable with these two divisions....If not then there are real questions that will need to be answered. Money from the telecoms is usually flowing fairly good by the end of June.
Yeah this basically get down to does somebody know something....and is the company executing or not....Technically the stock looks way undervalued...Any good news should send the stock over $3.50 to $4 bucks rather quickly.
Especially with the kind of short covering that may need to take place. The short covering alone could be worth a buck right now.
This is getting really interesting....A lot going on.
Short interest is out and was up dramatically to 2,479,517 as of 6/30/14...Probably some from rebalancing.
But also along with the short interest news there is the Cremona news....there is the new appointment of Adib to the Board and the OBV is through the roof to the positive.
We are now plus 8,106,566 shares to the positive year over year with short interest up significantly year over year.....One year ago we were at $2.44...We are now at $2.32....Something has to give.
My question is what is the need to add another Board member?...Companies are very selective and do not just add members to the Board for no reason......and the main reason for that is because once inside even a single member can exert a lot of pressure and influence on a company.
Obviously this is no accident....so in the big picture but having a link to Google surely is a positive here.
Yes this is good news...I was just looking at Fared Adib's profile on Linkedin and he is now the Global Head Of Android Partnership at Google as of April 2014....Also I see that I share a couple common connections that are in the higher end of the telecom business...One of those connections is Joe Euteneuer the CFO of Sprint.
So anyway appointing a member of a Board is not to be taken lightly. So I guess that this guy would not be wasting his time on Westell unless there was a bigger story to come down the road....Time will tell.
Yes...I think you have to like this from the article.
With 670 DAS systems deployed in large venues, including 150 in the past year, AT&T has no plans to slow down. In fact, Donovan said AT&T will deploy another 250 DAS systems this year, adding to its impressive totals for presence in large public venues.
So it look like they are going to increase their DAS totals by almost 40% this year.
Right now I think we have some good technicals for Westell....Short interest and on balance volume (OBV) are very much in Westell's corner right now....Some good news from the company could spark a significant rally in the stock.
Yeah there was a question there of where everybody was positioned...Technically I think this should now play well...Also I'd like to know where the short interest is right now.
Really struggling to post today...Just about everything getting "failed to post" in red.......but anyway short interest up 472,216....Maybe positions ahead of rebalancing.
Anybody else having trouble posting?...I could put a rest post up on Yahoo but not Westell...Anyway was trying to put up a post in regards to the big increase in short interest but was blocked.
Yes..I see rebalancing will take place on Friday after the close...Always makes for some interesting trading....Have to watch the volume. Last year very modest volume. Thanks for the info.
Well I think we are entering what looks like a much more aggressive round of M@A and that is at all levels...from multi-billion dollar deals to much smaller deals down in the area that Westell plays.
And in the areas that Westell plays you have a lot companies both public and private that are in niche businesses in the $50 million range with good balance sheets, cash in hand and low to no debt...The key as Gilbert has often commented on is finding the right match and getting somebody that has the same goals and objectives.
Companies like (RFIL) RF industries or even a WTT although I am not promoting either for a deal with Westell are good examples of what I am talking about....Good companies but will need scale at some point.
As for the buyback it is about perception and talking out a few shares on the cheap while continuing to grow the business and being available for the M@A when it happens.
Well isn't the company becoming an M&A target the end game for Westell anyway?....That is the beauty of becoming a pure telecom play....especially in the hot areas of DAS and small cell.
The scenario I see playing out is they do one more acquisition and then package the company for a sale within 18 months....What Gilbert has done over the last 3 years is like a perfect migration and blueprint in prep for a sale..That I why I think we always heard about the magic $200 million run rate.
Basically Westell has done all the leg work...The just need somebody to come in and write the check....But this also is another reason that I think they need to keep pushing on the buyback.
On a side note it still looks like Kentrox is still hiring so obviously there is more going on with this part of the business that we may be aware of.
Just looking at the yearly on balance volume and it looks like we are a net plus 2,380,305 shares right now versus last year...The close was $2.45 a year ago....So we are trading 7 cents below the zero line.....Longer term this should eventually work it's way out over time....The current 2,580,305 translates to about $2.85....Also short interest is lower than last year this time.
This is really a simple idea here and not meant to get in the way of the core business....You put a small buyback in place like $10 million and you buy back a few shares along the way....That does not mean you have to exercise the buyback in full.
It is more to provide investor confidence while picking up a few shares along the way....And it would not be material in the bigger picture of M@A or daily operations...I agree with you that a buy on the open market by management would send a more significant message but I do not expect that to happen.
Actually a bit surprised that this post has generated this much interest....but again this is not meant to replace the core business...I do think it would go a long way in rebuilding investor confidence.....Just my opinion.
Look perception is reality right now...The company has 50% of revenue in cash...If they want to be taken seriously you need to do what serious companies are doing and that is putting a company buyback in place whether they execute it in full or not.
I guess to put it another way. When you get the chance to buy back your house at a discount you should likely take advantage of it.....and again a few bucks put aside for a buyback will not impact operations or stand in the way of M@A in the big picture...If it does then there are far bigger issues .....and that again will not matter in the big picture.
So again....There is not much of an argument for not having a buyback in place....Perception that your at least trying to do the right thing counts and goes a long way toward building investor confidence.