ASANTE (ASNT) Message Board

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Technology Stocks : ASANTE (ASNT)

ASNT 0.000200

0.0%

Sep 7 5:00 PM EST

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To: Eric B who wrote (52)	11/28/1997 3:08:00 PM
From: yehuda fruchter	Read Replies (1) of 116

This stock is significantly undervalued using any conventional valuation technique. It is still unfairly viewed as fully associated with Apple while they have had good penetration of the NT markets over the last year or so(they have a niche market in the graphics and education marketplace). The company is growing faster than COMS and ASND and is trading at a forward multiple of less than the market(the market is forecasted to grow at a little over 10% while ASNT is forecasted to have EPS growth of over 40% this year). I also believe that the $0.32 estimate given for ASNT in 1998 is probably a bit low. Using only a modest P/E of of 20, half its growth rate would give the stock a fair value of around $6.50. They also have over $1.50 in cash and no debt. A final way of looking at this situation is to notice that the market values this company at under $45 million when they will be doing close to a $100 million in sales by the end of 1998. This is probably the cheapest networking stock around, for the type of growth that is projected for this company and for the industry as a whole(although Cabletron is starting to become interesting too).

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