Emile,
You missed the essence of my statement, "Management of this company have dug one heck of a hole, and it will likely be a year or more before they regain any credibility.
Management may be able to get the ship straightend out inside of 9 months, but they have put enormous pressures on stockholder and financial institution trust. Trust and reliability of management are a cornerstone in providing solid and consistent returns on investments in stocks. Ascend management has cost many financial institutions, who make their livings on providing investment advice, much lost credibility with their clients who they recomended Ascend stock to. Obviously, if you are an analyst for a big house following high tech companies, you have to take what management says with a grain of salt when making your projections and recomendations for the companies stock, but ASND management has increased that prescribed dosage of salt to a 5lb bag. Most good managers of high tech companies know better than to brazenly and emphatically stand behind analyst estimates unless that are darn tootin sure the results will come in, usually this assuredness comes from existing order bookings. After Q2, Ascend had us all believing that numbers were going to run at a solid single digit to possible double digit sequential rate. Here it is, barely 90 days later, and those statements are in cataclysmic error.
Ascend management has severely strained many relationships with the powers that be. The powers, beyond you or I, that can make the stock move. They will likely not stand behind ASND stock for a good long time. Ascend grew ver big very fast, and crossed many bridges getting there, bridges that they may have just burned.
Wayde. |
