coms is at 28 1/2 and asnd is now at 26 1/4 less than a 2 1/2 point difference between the two stocks. will we see people moving from asnd to coms at this price level?
Blankmind,
I don't think so. Just in terms of earnings visibility for the next 2 quarters, ASND seems a less risky move. That is, 4Q is pretty much known, mgmt seemed quite confident about 1Q in Scottsdale and, previously, was confident about '98 as a whole. As for Asia, mgmt has said that non-Japan Asia is assumed to be zero revenue growth over the next year.
In contrast, COMS earnings for the next few quarters are less visible, and I think there is some concern about lingering inventory problems. I also don't know what COMS is doing about its Asian exposure, or how that will effect its earnings.
This is not to say that COMS might not be the better performer. It is just to say that, looking at fundamentals, there is no compelling reason to switch from ASND to COMS, regardless of the similar in price.
Gary Korn |
