Westell Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFFF0;font-size:3em;'>WST</div>
WSTL -- USA Stock  

USD 0.78  0.02  2.50%

My story will summarize Westell. We will analyze why Westell investors may still consider a stake in the business. Westell is at this time traded for 0.73. The entity has historical hype elasticity of 0.01. The average price elasticity to hype of competition is about -0.22. The firm is anticipated to increase in value after the next headline, with the price going to jump to 0.74. The new volatility of media hype impact on the company stock price is is way over 100 percent making price predictions on social media along less reliable. The price surge on the next news is estimated to be 1.37%, whereas the daily expected return is at this time at -0.39%. The volatility of related hype on Westell is about 779.17% with expected price after next announcement by competition of 0.51 Given the investment horizon of 30 days, the next anticipated press release will be in about 3 days.
Published over three weeks ago
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Will Westell (OTC:WSTL) price continue pulling away?
Westell's average rating is Strong Buy from 1 analysts. We provide recommendation to complement the prevalent expert consensus on Westell. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time.
The successful prediction of Westell stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Westell, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Westell based on Westell hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Westell's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Westell's related companies.

Watch out for price decline

Please consider monitoring Westell on a daily bases if you are holding a position in it. Westell is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the otc stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Westell stock to be traded above the $1 level to remain listed. If Westell stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

Use Technical Analysis to project Westell expected Price

Westell technical otc stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Westell technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Westell trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How Westell utilizes its cash?

To perform a cash flow analysis of Westell, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Westell is receiving and how much cash it distributes out in a given period. The Westell cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Westell Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at (2.33 Million)

What is driving Westell Investor Appetite?

The entity reported the previous year's revenue of 28.3 M. Net Loss for the year was (8.77 M) with profit before overhead, payroll, taxes, and interest of 9.65 M.
 2017 2018 2019 2020 (projected)
Receivables8.87 M6.87 M4.05 M4.15 M
Inventories9.22 M9.8 M6.81 M6.99 M

Deferred Revenue Breakdown

Westell Deferred Revenue yearly trend continues to be relatively stable with very little volatility. The value of Deferred Revenue is projected to decrease to about 2.1 M. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Westell Deferred Revenue is relatively stable at the moment as compared to the past year. The company's current value of Deferred Revenue is estimated at 2.06 Million
2010
2011
2014
2015
2019
2020
20101.23 Million
20112.56 Million
20143.17 Million
20152.84 Million
20192.55 Million
20202.06 Million

Possible December correction of Westell?

The kurtosis is down to 4.9 as of today. Westell exhibits very low volatility with skewness of -0.91 and kurtosis of 4.9. However, we advise investors to further study Westell technical indicators to make sure all market info is available and is reliable. Westell is a potential penny stock. Although Westell may be in fact a good instrument to invest, many penny otc stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Westell. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Conclusion on Westell

While some other entities within the communication equipment industry are still a little expensive, even after the recent corrections, Westell may offer a potential longer-term growth to stakeholders. The inconsistency in the assessment between current Westell valuation and our trade advice on Westell is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Westell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Westell. Please refer to our Terms of Use for any information regarding our disclosure principles.

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