Its funny how Ascend came out with a press release just abou the same time:
Now a real tough question, which stock would you buy now based on the current valuations:
______price/sh____cap_____'97E.rev_____PE'97___EPS '97__Est.EPSgrowh
USRX____$77________$6.5b_____3.3b_________23______3.3________40%
ASND____$72________$8.6b____<<3.3b(?)_____49______1.48_______48%
IMHO, USRX is clearly undervalued, at least compared with ASND at this moment. According to the USRX announcement, USRX actually leads ASND in the remote access business which is ASND's core business.
SAN FRANCISCO, Calif., Dec 12 (Reuter) - Ascend
Communications Inc executives said they expect to end the year
on a pretty strong financial note despite summer pricing
pressures which slowed Ascend's blistering revenue growth.
"Revenues have been doubling year to year for about four
years in a row now. We'll continue that revenue growth
although not at quite the same percentage rate this year,"
Bernard Schneider, vice president of strategic business
development at Ascend, told investors at a Montgomery
Securities technology conference here.
"If you look at the units year to year the growth has been
about the same. Those who follow Ascend closely will recognize
there were fairly significant pricing pressures during the
summer and as a result revenues haven't grown quite as quickly,
but we think we'll finish the year pretty strongly," he said.
Schneider also said the company's balance sheet was in a
strong position, and "We're well positioned to fund both
internal growth and make any acquisitions."
Schneider declined to comment further on whether the
company is currently evaluating any acquisitions or on the
details of the company's financial performace in its current,
fourth quarter.
-- sam.perry@reuters.com, +1 415 846 5400 |
