Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 206.43

-1.2%

3:36 PM EST

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To: The Phoenix who wrote (51655)	8/5/1998 10:05:00 AM
From: Souze	Read Replies (1) of 61433

Gary, Thanks for the response. I would like to roughly address your points to encourage a discussion. If the Cisco $1.26 'net income per share' is comparable to Ascend's projected (5 months hence) $1.20, then: PE, Using yesterdays closing prices Cisco $93.125/1.26=73.91, and Ascend 47.688/1.20=39.74. To me, this is a big imbalance even taking into account the 5 month window. Earnings and revenue growth at both companies are strong. 'Haven't done my homework by checking the numbers, so I don't know who has the edge here. Stability. Have to give that one to Cisco, given Ascend's '97 performance. Future earnings/revenue growth potential. That's the biggie and is also up in the air. But given Ascend's WAN emphasis and the high margins in that area, I'd give the edge to Ascend. Take over premium. Surely Ascend's share price should benefit here. There are lots of other factors, e.g. brand recognition, that go into share price. And each item has different weights. My point is that, from my admittedly weakly grounded technical view, it appears that that ASND is fundamentally a much better value than CSCO at today's prices. Comments? Souze

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