Dow Jones Business News -- August 6, 1996
From the WSJ:" Westell Jumps 11%; Renewed Interest In
ADSL Seen
By THOMAS GRANAHAN
Dow Jones News Services
NEW YORK -- Renewed optimism over the first volume deployment of
Asymmetric Digital Subscriber Line, or ADSL, equipment may be fueling a rally
in the shares of Westell Technologies Inc. (WSTL).
Recent stories, including one in Inter@ctive Week magazine, suggest that
significant shipments using the technology, which offers high-speed connections
over exisiting copper wire, may not be too far down the road.
Phone companies could use ADSL to provide customers with new services, like
high-speed Internet access, video-on-demand, remote access to corporate
databases, and video phoning.
''Some people were concerned that ADSL was not going to be rolled out as fast
as they had expected,'' said Wojtek Uzdelewicz, who follows the stock for
Cowen & Co. ''There was also overall market nervousness (driving Westell
lower), but the story at Westell didn't change. It's a good, solid company.''
The shares, which were trading as low as 19 1/4 just two weeks ago, were
recently up 3 1/4, or 11%, at 31 7/8 on Nasdaq volume of 520,000 shares.
Average daily turnover is 322,000 shares.
A spokesman at Westell said the company had released no recent news that
Phone companies could use ADSL to provide customers with new services, like
high-speed Internet access, video-on-demand, remote access to corporate
databases, and video phoning.
''Some people were concerned that ADSL was not going to be rolled out as fast
as they had expected,'' said Wojtek Uzdelewicz, who follows the stock for
Cowen & Co. ''There was also overall market nervousness (driving Westell
lower), but the story at Westell didn't change. It's a good, solid company.''
The shares, which were trading as low as 19 1/4 just two weeks ago, were
recently up 3 1/4, or 11%, at 31 7/8 on Nasdaq volume of 520,000 shares.
Average daily turnover is 322,000 shares.
A spokesman at Westell said the company had released no recent news that
Phone companies could use ADSL to provide customers with new services, like
high-speed Internet access, video-on-demand, remote access to corporate
databases, and video phoning.
''Some people were concerned that ADSL was not going to be rolled out as fast
as they had expected,'' said Wojtek Uzdelewicz, who follows the stock for
Cowen & Co. ''There was also overall market nervousness (driving Westell
lower), but the story at Westell didn't change. It's a good, solid company.''
The shares, which were trading as low as 19 1/4 just two weeks ago, were
recently up 3 1/4, or 11%, at 31 7/8 on Nasdaq volume of 520,000 shares.
Average daily turnover is 322,000 shares.
A spokesman at Westell said the company had released no recent news that
would explain the stock activity.
The article in Inter@ctive Week noted that Ameritech Corp. (AIT), BellSouth
Corp. (BLS), SBC Communications Inc. (SBC), and Pacific Telesis Group's
(PAC) Pacific Bell unit have issued a request for proposals that are expected to
result in the first volume deployment of ADSL equipment.
The request, according to the article, calls for the four companies to deploy a
total of 62,000 to 70,000 ADSL circuits next year at a cost of about $100
million. Bids are due in August, and prototype equipment should be available in
the fall.
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