If ASND were priced in the current market relative to CSCO, it would trade at a share price of $36 1/2. That assumes that they will be a penny over earnings estimates as they have been over the last three quarters. Any downside surprise, and we all know what happens.
And please, tell me why you would buy stock in a $1 billion hi-tech company that grows at an astounding rate of 7.7%. Geez, AAPL will probably grow at 7% this year. If CSCO is the bellweather, then this stock is way over-priced. And in a year in which earnings, particularly from the Far East portion of the world, are going to be harder to create than last year.
biz.yahoo.com
biz.yahoo.com
Here's Dillon Read's Opinion (most recent available; somebody always likes to quote these silly analyst reports, but notice the 12-month price):
SBC Warburg Dillon Read issued a Company Report on April 13, 1998 for Ascend Communications, Inc..
On April 13, 1998 SBC Warburg Dillon Read's Research Department issued a 1 page Company Report on Ascend Communications, Inc. Report highlights: 'A BUY rating was maintained with a 12-month price target of $45 per share to reflect long-term growth opportunities and improved product lines. First-quarter 1998 EPS of $0.26 versus $0.31 in the same period last year was reported in spite of a positive turnaround in its access switching business and sequential gains across all business segments. The shortfall in earnings was attributed primarily to significant price erosion and continued pressure on margins. The fiscal 1998 and 1999 EPS estimates of $1.18 and $1.50 per share, respectively, were also maintained based on 35% earnings growth over the next five years and ongoing cost containment measures.'
16 million in short positions tells me that someone smells blood...
just my own lame, indoctrinated opinion... |
