>>>Thanks for the response. Given that investors are looking towards Q4 and beyond, what sort of quarter-to-quarter growth is needed going forward, and for how many quarters, to bring this stock back into favor?<<<
Skip, I believe the consensus estimate for proj. growth in 1998 is in the neighborhood of 35 -- 40%. With current p/e on revised 1998 estimates currently at 18 or 19, this stock is trading at roughly 1/2 its value. This is why many of the firms have long term (12 mo) price targets anywhere from 70 -- 80. Bargains are hard to come by these days, and the intense volume and positive bias we've been seeing since yesterday demonstrates that the smart money is beginning to re-entrech itself into ASND at these levels. Assuming a 1998 p/e of 18, and a growth rate of 37.5%, the PEG ratio is 0.48. Like I said, near half its value based on p/e-to-growth (PEG). On these current numbers, fair value would be approx. $70. You can trust that these same numbers have been run by the savvy fund managers and will be the basis for re-establishing their long positions -- in fact it is very well likely that they already HAVE established new positions and are simply accumulating...they buy into the amateurs' panic, which allows them to build a position quickly without moving the price against their favor. Very wise, don't you think?
In answer to your question, the growth and other factors are already there...this stock is already moving back into favor. When Q3 earnings are out of the way, the stock will move quickly back to the 50s...the smart money knows this, and is accumulating now while the dumb money is still nervous and weak.
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