Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 208.59

+4.1%

3:59 PM EST

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To: Robert Scott who wrote (16403)	10/5/1997 2:30:00 PM
From: sea_biscuit	of 61433

[Some general comments follow. I am not referring to any of the points made by Robert Scott] Boy! It sure is a bull-market when people think that a stock selling at 50 times trailing earnings and at 12 times sales, is a "bargain" (which was what Ascend's valuations were, when it was selling at the $55 levels). Keep in mind that bad quarters do not occur in isolation. Like the proverbial cockroach in the kitchen, they always occur in bunches. So, it looks like we will be in "descend" mode for a long while. Let me make it clear that I am neither short nor long on this one. I have had no association with this stock at any point in time. I have heard people talk a lot about it, though. I wouldn't want to have anything to do with a stock that has as high a PSR -- price-to-sales ratio -- as this (even now, after getting clobbered). Getting caught between momentum investors and short-sellers is not my idea of investment (or fun, for that matter). I am wise enough to realize that when two elephants fight, it is the grass that suffers! For those who bought into the "bargain" theory at 55, and scoffed at the idea of doubling their money in 5 years i.e. 15% annual appreciation, this is what I say -- you now have a 40% decline, and will have to generate upwards of 21% every year for the next 10 years to beat me! And assuming that the stock doesn't go up (or down!) for the next year, the required rate rises to 23.5% a year. Good Luck! And may the Force be with ya all! Dipy.

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