Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 201.40

+2.3%

3:59 PM EST

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To: 16yearcycle who wrote (15605)	9/30/1997 3:09:00 PM
From: James A. Shankland	of 61433

In all sincerity, why does it look cheap at 5+x sales?CSCO is at about 6x sales, COMS is at 2x sales. Eugene, I think the central question dividing optimists and pessimists is this: was this quarter an aberration, or part of a long-term trend? Optimists cite reports that product problems with the MAX TNT have been resolved; the GRF's modest lead over Cisco's BFR; the end of Europe's traditionally slow summer; improvements in Rockwell's K56Flex implementation; the eventual issuance of an ITU 56K standard; and the generally explosive growth of the networking market. Pessimists cite increased competition and declining margins for RAS equipment; the fact that CSCO and COMS are much larger than ASND, coupled with a customer preference for one-vendor solutions; and an enlarged COMS foothold in the RAS market due to x2's at least temporary technical superiority. So who's right? We'll see. As I said in an earlier message, I'm guardedly optimistic. I don't see that COMS and CSCO are eating ASND's lunch ... yet. The risk is there, though. ASND really must execute well now. Next quarter's results will give us a better indication of how the game is going.

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