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

To: William Vu who wrote (24065)	11/19/1997 7:07:00 PM
From: Gary Korn	Respond to of 61433

Someone has pointed out that this translates into approximately 40% year to year,which is very good to me. Why is this considered not sufficient by others? Something is out of my reasonings.I would appreciate your coments. William, I believe one concern is that 40% revenue growth will translate into something less in terms of earning growth. Even so, I am long ASND and continue to be so for a variety of reasons. Some follow: 1. The entire network sector is down now. ASND should turn up with the rest of the nw stocks. Having ridden ASND down, I don't see the point in dropping it now. 2. ASND has a very favorable p.e. vis-a-vis other network stocks. So, if I'm going to ride the sector back up, this seems as good a prospect as any. 3. 40% revenue growth is fine by me and should power an upswing in the stock over time, even if earnings don't increase at the same rate. 4. I think the bad news is out. The stock is acting as if that is so since it bottomed at 23ish. 5. I like the qualifications of the new CFO, Michael Ashby, as well as his apparent connections in the Telco industry. 6. The downgrades have stopped. When the upgrades start, that should power the stock as well. 7. ASND is a leader in several critical internet fields, as Maverick can best describe. 8. I believe ASND was, and likely still is, in acquisition talks. The prospect of a takeover of ASND is an extra bonus in holding the stock, in my opinion. 9. I like a company that, in a horrible quarter (3Q) somehow manages to make money (20cents/share). 10. I like a company with no debt and with over $500MM in cash and cash equivalents. Gary Korn