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 |