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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Ms. X who wrote (20344)	11/1/1997 1:28:00 AM
From: sepku	Read Replies (3) \| Respond to of 61433

>>>Why do you say the sector has been in a slump for 9 Months? After March's fiasco this year, the sector reversed up from the 26% level and rose to 62% before reversing down in this months decline. That is a nice rise.<<< I say that because that is when it became clear to the Street that the networking sector would no longer be capable of exhibiting triple-digit annual growth rates. It is true that the networking sector, for the most part, had a partial recovery in early Summer, but notice that the enormous p/e premiums were no longer awarded to the stocks. Also, sequential Q over Q eps growth has slowed across the board, and revenue growth has dropped significantly. Also, the battle over the 56K standard has slowed ISP infrastructure build-ups in awaiting a standard, further slowing revenue streams. One clear way to demonstrate the time frame of the networking sector slowdown is to take a look at an industry-wide 52-wk chart. I believe almost every networker is sitting either at the same level as 9 months ago, or well below. After such steller triple-digit annual returns on investment capital for the past several years, the slowdown in the networkers as a whole is clear...they have practically been stuck in the mud. >>> If I put 3 charts in front of you right now and said " Mr Style pts., here are three charts of nameless companies, pick the one you think will best succeed." You wouldn't have picked Ascend. It has been underperforming desperately since March of this year.<<< That depends on each individual investor's unique investing style, time frame, and strategy. I, for instance, would look at ASND's balance sheet and other fundamentals. If I was a first-time buyer, I would have bought FAR more shares at today's price, rather than be sitting on thousands of shares @ 33 1/2. But that's just me. I am attracted to value, synonymous with growth. And I truly believe ASND is damn attractive right now! >>>Supply and Demand. Right now Supply is in control. I hope it does firm up I wouldn't want anyone to be disappointed.<<< The demand is still there...but macro-economic factors and various technical differences over industry standards are creating barriers to new orders. This will correct soon, because the demand for more bandwidth and faster access to the Internet is continuously growing at enormous rates regardless of how the networkers are faring. >>>My advice was to those who are itching to buy more or to enter the stock, not to those who have been long.<<< Then I can certainly understand where you are coming from. Style Pts.