Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 210.01

+1.7%

Nov 26 3:59 PM EST

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To: Riskmgmt who wrote (23907)	11/19/1997 5:30:00 AM
From: Joseph Pareti	Read Replies (2) of 61433

>Then why are you so bullish on the stock? > If they make $1.05 it's a 7% growth rate over 1996. > And $1.22 is about a 17% growth rate. > > $1.05 @ 7 = $7.35 > $1.22 @17 = $20.74 > > Taking the average of 12 @ $1.05 = $12.60 > 12 @ $1.22 = 14.64 it looks right if you assume the target p/e = eps growth. The validity of this looks suspicious if a company was breaking even and shows now some profit, then the eps growth would be deceivingly huge. I hate to post the numbers that follow, as I am long on ASND, but I do it anyhow for better understanding : company - eps - price - p/e - eps growth - target p ASND -- 1.07 -- 25 -- 23.4 -- 9% -- 10 COMS -- 2.26 -- 33 -- 14.6 -- 24% -- 54 INTC -- 3.84 -- 78 -- 20.3 -- 32% -- 123 SUNW -- 2.25 -- 33 -- 14.6 -- 19% -- 43 I have used the ZACK consensus estimate for the eps in the current fiscal and the ratio of this to the previous fiscal eps to calculate the eps growth rate. It looks appalling. Hope somebody proves I 'm wrong :-)

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