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Technology Stocks : Xylan

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To: E_K_S who wrote (3363)11/7/1998 1:17:00 PM
From: Gary Korn  Read Replies (3) of 4135
 
Since these sales have occurred like clock work, I really would not worry too much. IMO the stock is still undervalued.

Eric,

I agree on all counts. FWIW, even at 17 1/4, XYLN has a market cap of about 2.5x sales, yet it has guided towards $450-460MM sales in 1999 (which, at current prices, is just 1.6x sales).

Put another way, while 1 share of XYLN stock represents just $2.50 in sales, the same 1 share of CSCO stock represents almost $5.5 in sales. (And 1 share of ASND stock represents about $6.70 in sales).

Best,
Gary Korn
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