U.S. Markets close in 1 hr 55 mins

Westell Technologies, Inc. (WSTL)

Other OTC - Other OTC Delayed Price. Currency in USD
Add to watchlist
0.7000-0.0250 (-3.45%)
As of 12:14PM EDT. Market open.
Sign in to post a message.
  • p
    phennes
    CNBC just had a guy named Erick Hirsch from Hamilton Lane Advisers.

    He was talking about a lot of healthcare and tech private equity deals going down lately.

    CNBC said about 5,500 deal worth about $345 Billion and about $2 Trillion is PE out there.

    Also said a lot of these deals are getting done very quickly because of tax concerns going forward.

    As I have recently said I do not believe there is much room for any of these small tech companies trying to compete against highly leveraged, well capitalized companies with very high stock price valuations.

    I believe WSTL would be one of these companies that would probably need to be sold at some point whether private or public....Just my opinion.

    On a side note as I mentioned this morning...If this board should go away I will move to the WTT board for Westell related news.
  • R
    RolandL
    phennes
    Did you buy any ARWR when I mentioned it about a month ago. At that time as in the mid to lower 40s, now look at it @ $57 !!!!
  • M
    MadAtTaknas
    And it’s over. Trading suspended starting today. Best of good buys.

    https://listingcenter.nasdaq.com/IssuersPendingSuspensionDelisting.aspx
  • p
    phennes
    The 3rd Form 13E3/A out this morning...It looks like they took out about 4.9 Million shares for $7.2 Million at $1.48.

    That leaves about 7,436,792 A shares and 3,484,287 B shares for a total of about 10,921,079 shares outstanding.

    In effect really what they did here was the equivalent of a large stock buyback where they took out about 40% of the A shares for $7.2 Million.

    So we now can get a better idea of where the price should probably be going forward.

    If you assume they now have about $14.7 Million in cash left...and put revenue at just $25 Million which is probably low going forward....(Emory projects revenue of $32,533,000 for 2021 and $39,462,000 in 2022 in the filling they did for Westell)...then you get a far higher stock price than we are currently trading at in my opinion.

    Just 25 Million in revenue plus the $14.7 Million in cash gets you to a bout a $40 Million valuation...and now divide that by the 10,921,079 shares outstanding and you get to about $3.66 per share valuation.

    In effect the people that took the lower $1.48 buyout actually made the remaining shares outstanding more valuable....Just my opinion.
  • R
    Ron
    PreCambrian may have it right. Once WSTL is on the pink sheets, liquidity will dry up and the ownership team with senior leadership will buy up shares at lower prices when available to fully take the company private, in my opinion. The stock is worth what someone is willing to buy or sell it at - and that is $0.80 cents.
    Neutral
  • J
    James K.
    Received my money this morning in my ETrade account - then they charged me
    $38.00 for reorganization fee which is a rip off!!
  • R
    RolandL
    Anybody get their cash yet for your shares you had to cash in because you had 999 or less shares of WSTL ???
  • P
    PreCambrian
    Has anyone actually received their $1.48 buyout cash from WSTL in their brokerage account yet?
  • S
    SUSAN
    I haven't received my $1.48 and have received no information regarding when I will get that $1.48. I've called the company twice and have received no call back.
  • p
    phennes
    I guess a better way of saying it is when the stock was stuck at 80 cents and it looked like Covid was going to take over the world (which I never believed)....then an offer to go private and pay a premium to $1.48 made some sense.

    But that is not where we are at now....The virus is dying off...business is returning and things are getting back to normal....The stock market has made new all time highs and the markets are absolutely flooded with liquidity....So suddenly that $1.48 number starts to look really cheap instead of a premium.

    And when you look at the projected Emory numbers over the next couple of years and they are ones who did the valuation for the company then valuations should probably be significantly higher than the $1.48 that was figure in at the height of a Pandemic.

    So to sum it up here, much of the money coming in over the last few days probably is not money looking to get $1.48.....but probably more a bet on the turn around of the company based on valuation, available liquidity and 2021 year ahead in the overall economy that could blow the doors off of any recovery in history...Just my opinion.
  • R
    Richard
    · Ericsson acquires the market-leader for Wireless Edge WAN solutions for an enterprise value of USD 1.1 b. · Acquisition complements Ericsson’s enterprise offerings and creates valuable new revenue streams for customers · Transaction expected
    · Ericsson acquires the market-leader for Wireless Edge WAN solutions for an enterprise value of USD 1.1 b. · Acquisition complements Ericsson’s enterprise offerings and creates valuable new revenue streams for customers · Transaction expected
    www.ericsson.com
    Bullish
  • P
    PreCambrian
    In my Schwab accounts this morning, I have 0 shares of WSTL and in my transactions Schwab indicates "ledger entries" for the "reverse split" and "closeout for less than 1000 shares". However there is no value or dollar amount indicated so my account balances went down overnight (from $1.12/share to $0.00/share). I am assuming that dollars will eventually flow into my account and that I didn't sell it for $0.00 (like I did when Linn Energy went bankrupt).
  • M
    Mike
    Westell stockholders meeting today.
  • T
    Todd G
    Does anyone have an idea why the stock is only trading at $1.22 right now when supposedly shareholders of record as of tomorrow of under 1,000 shares will get $1.48?
  • R
    Ron
    I hope the 1k+ plus shareholders got out. Once they move to the pink sheets, there is no guarantee of continued trading.
  • S
    SUSAN
    I received my $1.48 per share in my Schwab account this morning. (10/14/20)
  • p
    phennes
    Right now there is no way to any real price discovery...and all the shares that are being cashed out or not available for trading.

    But again....the shares are being delisted so an evaluation or price discovery will have to wait for now.

    And depending on how many shares were taken out in cash the stock may actually be worth far more now.

    I'm sure the company thinks the shares are worth more and certainly the CEO who was buying in the open market likely think that.....I mean the company was not exactly trying to reward investors, many who were doing nothing more that exploiting the company to take $1.48 out unless the company view the offer as beneficial to the company in the end.
  • R
    Richard
    My understanding is that you can actually do both options that Jesse discussed. The key is that the "shareholder of record" is determined by the title of the account. Most people have multiple brokerage accounts with different titles. So, for example I have a joint account, an individual account, a traditional IRA account, a Roth IRA account My wife has similar accounts. All of them can hold 999 shares and be cashed out at $1.48 per share. Or, alternatively, some can hold 999 shares and be cashed out while others can hold unlimited number of shares and participate going forward.
    This is not investment advice. Do your own homework and come to your own conclusions.
  • M
    Mike
    Got mine today too. No fees Schwab.
  • J
    J
    Why is anyone surprised by Westell’s inaction? This is a company that has brought pain and misery to stockholders and employees over many years. Be glad they are gone, like Tellabs before them, where many Westell managers came from.