What are you doing with ASND? COMS?
Long time holder of ASND, as you know, although only holding half my original position. Currently long 400 at 40 and change. Want another 400 around 40 (but doubt I'll get it).
Like this company a lot. I think they are fairly valued now, with limited downside. They will make this quarter and the next, likely with a nice upside surprise. The CFO of this company, Michael Ashby, is a no non-sense guy. He was brought in after last years debacle to build back up a ravaged street relationship. He has accomplished this to a large degree, by underpromising and overdelivering (exact opposite of the previous CFO and Mory). Of course all this means nothing without a solid product line, and they have it. RAS/RAC and ATM are what the internet is all about, and thats what they do. They are #1 is RAS/RAC (ahead of both COMS and CSCO), and 1,2, or 3 depending on who you ask in carrier ATM switching. And this is the high growth area for at least the next few years.
I think this quarter needs to come in minimum .02 above to make the next move up (47-53 range, without takeover premium).
COMS is interesting. They sell more modems and NICs than anyone on the planet. But this is low margin stuff. Their RAS/RAC is ok, but they lost the big lead they had. Their systems business is just non-competitive against CSCO (routers) and ASND (ATM). Tough call on this one. I thought they were bottomed near 30. Made good money on them last year. Lost some this year. Don't have any right now. They are probably still a quarter or two away from having consistent earnings again (if ever?).
Gary |
