Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 212.01

-0.6%

3:59 PM EST

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To: Andreas Samson who wrote (12083)	9/12/1997 5:54:00 PM
From: Chi-X	of 61433

Well ASND announced their margins are slipping. That was an obvious reason to be alarmed a while ago when price competition heated up in the networking industry. So assuming its margins are squeezed, they are 25% now and hypothetically speaking maybe they fall to 15%. Well, that means earnings may fall from $137 million to $57 million or about $0.30 a share. This hypothesis gives them a future PE of around 120 from my estimates. Many fund managers may not want to buy it at a PE of 120. So anyway I think ASND may earn closer to 0.30 a share in the future (maybe not this year). ASND may need to come out with some high margin killer products that will revolutionize the networking industry. But that may be difficult even with the 56k switch since that is way too slow and the internet industry is always looking for speed. Maybe if ASND can branch into cable modems. But to some it up, as a short term trader, I place less emphasis on fundamentals and have more emphasis on technical moves and surfing the momentum. As a trader I find ASND short term oversold and I'm looking for a bounce. Cheers, Chi-X hath Spoken! Absolutely Princess Diana 1961-1997 members.aol.com

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