Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 220.42

+4.9%

Dec 12 9:30 AM EST

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To: Dee Jay who wrote (1463)	12/31/1996 7:53:00 PM
From: Dave von Hausen	of 61433

Dee Jay, >> how many companies can you name that will double sales every year in the near >> term? OK, lets assume PE grows at 100% for the next 2 years. Also assume the stock market grows at 10% for the next 2 years. Then at the end of 2 years we have PE = (((72/2)/2).9).9 = 14 If we also assume the PE will be 60 for a stock growing at 100% at the end of the 2 years then the price of the stock will be 60/1462 = 266 before splits or a 4 fold increase. These assumptions appear to be valid if the stock does grows at 100%. Are they? If the bull market continues then it could be even higher. More conservatively assume the market does not grow at all in the next 2 years. Then we have a PE =((72/2)/2) = 18. If we assume the PE will be 50 at the end of the 2 years then the price of the stock will be 50/18 62 = 172 before splits. This is why I am afraid to wait too long before buying. By the way, I'm having trouble reading and posting at this site. Are others having trouble or is it AOL (my service provider)? Dave

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