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

To: Inga who wrote (23996)	11/19/1997 7:01:00 AM
From: Inga	Respond to of 61433

There are other ways to compute the fair value of a stock instead of using EPS and P/E. For high growth company like ASND, the stock price fair value is computed with forward revenue projection. If the growth rate is stable and predictable, a fair value can be 4 to 8 times revenues divided by the number of shares. Assuming ASND makes 1.2B on sales by December 1997 with 199 mm shares, 4x gives a fair share price of (4*1200/199 = 24) or 8x gives a speculated share price of 48. If revenue projection in 1988 is used and if history repeats itself, at the end of 1988, assuming revenue of 2.0B on same 200 million shares, the fair share price might be 40 or speculated value of 80. Think of it so do not panic and sell. If we all believe there is a future for networking and Internet, ASND may pass 80 by the end of 1988. Cheers. Lanny Dao

To: Inga who wrote (23996)	11/19/1997 9:01:00 AM
From: Joseph Pareti	Read Replies (1) \| Respond to of 61433

thanks Lanny for the illuminating thoughts. However ... >The numbers and computations you got from Ray Smith are misleading. I got the numbers from ultra.zacks.com >Note the progressive improvements in both % change of >revenues and >net incomes. I do not see any major deviations >from the 5-year fundamentals. I agree until Fy1996. As of fy1997 the earnings flatten out. Are you sying this is a consequence of last quarter shortfall (eps=20 cents ) and the eps curve would resume its trend ?

To: Inga who wrote (23996)	11/19/1997 9:35:00 AM
From: Riskmgmt	Read Replies (1) \| Respond to of 61433

Lanny: Thank you for your imput and for taking the time to run some numbers. Though i think your arguement is less than convincing I applaud your effort. Re: The numbers and computations you got from Ray Smith are misleading. There is no intention on my part to mislead anyone, which is why I also stated that I would welcome arguement and logical comments. I am just a confused bull turning into a skeptic-asking for someone to convince me this stock is undervalued . I am still waiting and hoping but it may be indicative of the sentiment of the thread that noone has of yet. regards, Ray