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Technology Stocks : Ascend Communications (ASND)
ASND 209.15-1.5%Nov 20 3:59 PM EST
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To: vegetarian who wrote (25409)12/3/1997 10:35:00 PM
From: vegetarian  Read Replies (3) of 61433
 
Here are some observations:

Theorem: ASND investors are more rational than COMS investors.

Proof:
-Both the stocks were trading at about 35$ per share before a warning
-Both companies issue an earnings warning
-COMS issues a stronger (worse) warning than ASND, that is ASND said 20-22c for the Q, COMS said slight profit (read about 5 c) for the Q
-ASND bulls are more scared of the warning on the warning-eve, COMS bulls say it was already known and discounted
-The next day ASND opens at about 30 (little under), COMS opens at 33.
The intraday low for COMS is higher than ASND inspite of the warning being strong
-The next day ASND closes at about 32.5 (from memory), COMS closes at about 35 (almost even)
-ASND investors have heeded to the warning, COMS investors have completely ignored the warning
-in 2 months time ASND is down to 23

Corollary: COMS will probably see more downside than ASND after 2 months time

-in two months time COMS will be_____(fill this in)
Proof:
The proof follows from the theorem and
-COMS has said their problems will persist for at least 2Q whereas ASND expects to get over their problems in 1 Q
-Both managements have kinda lost credibility with the wall street
-Many COMS investors have their origin in the Motley Fool, thus are more obstinate about the prospects of the stock and see any down side as a selling opportunity

FEEL FREE TO DISPROVE THE ABOVE
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