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

To: Gary Korn who wrote (585)	11/21/1997 7:55:00 PM
From: Duke	Read Replies (2) \| Respond to of 1629

Thread, a Commentary from Briefing for networks stocks: INDUSTRY FOCUS Ratings Key: 1. Outperform 2. Slightly Outperform 3. Average 4. Slightly Underperform 5. Underperform. A split rating such as 2/3 refers to short-term/long-term and is used when there is a particular short term influence of note. Revisions Key: Date of last revision; N/new, +/upgraded, =/unchanged, -/downgraded COMP - NETWORKING....3/2.........11/20..........(-) Comment: Our upgrade of the networking industry in mid-September proved premature, as the networking industry short-circuited over the past couple months due to supply concerns, a weaker than expected pricing climate, earnings shortfalls and ratings downgrades. While the days of explosive triple-digit growth are now a thing of the past, it is important to remember that strong growth in the soho (small office/home office) and Internet/intranet markets suggest that the group will deliver average annual earnings growth of near 20%-25% over the next 3 years. By comparison, the S&P 500 is expected to post growth over the same period of 7.6%. Consequently, today's valuations in the networking sector are rather attractive from a long-term perspective. But valuations are only one consideration in gauging a group's future price movement. Momentum is another. Right now the industry's momentum is downright awful. Only group leader Cisco is hoding up relatively well. Ascend, 3Com, Cabletron, FORE, Newbridge and Bay have all posted sizable declines. While we contend that the worst of the selling is over for the sector, lingering earnings concerns (heightened by the SE Asian crisis) indicate that the group will do well to keep pace with the market over the near-term. Longer-term, favorable valuations, above market growth prospects and the a pick-up in industry consolidation (FORE, Newbridge and Cabletron are all possible candidates) suggest that group will bounce back and slightly outperform the market. Though Briefing maintains that additional downside risk is limited, we are lowering our rating on the sector from 2/1 to 3/2 to reflect the more clouded earnings outlook and the poor short-term technical tone. Stocks:Ascend Communications (ASND), Bay Networks (BAY), Cabletron Systems (CS), Cisco Systems (CSCO), FORE Systems (FORE), Newbridge Networks (NN), Shiva Corp. (SHVA), ThreeCom Corp (COMS), Vanstar Corp. (VST), Xircom Duke.

To: Gary Korn who wrote (585)	11/23/1997 12:53:00 AM
From: satish kamat	Read Replies (1) \| Respond to of 1629

The top 10 trends for 1998: RED HERRING What does next year hold for the technology business? The Herring looks ahead at the developments that will shape the Internet, the financial markets, and the role of technology companies in politics. TOP 10 TRENDS FOR 1998: INTRODUCTION By Jason Pontin At the risk of seeming a little like The National Enquirer, which likes to conclude the year with a list of "psychic" predictions, the editors of The Red Herring thought it would be amusing and instructive to ask: What will happen to the technology business in 1998? Choosing the top ten trends was much easier, and much more fun, than we expected. Every story we had written, we discovered, had been a kind of trends piece. In selecting a startup, or in explaining why a large, public company was losing its business, we were betting the bank on the future. We choose companies because we think their stories are in some way representative of a broader industry trend. So it was a cinch. We knew what we wanted to say. The ten trends are loosely arranged into three parts: speculations on the Internet (Trends 1 through 6), meditations on the consequences of the economic boom for the financial markets and the technology business (Trends 7 through 9), and our thoughts on the influence of technology companies on politics (Trend 10). The trends should be read in order because some of them follow on from each other. There is also a bonus "antitrend" -- something that will absolutely not happen. Windows NT Server, popular wisdom notwithstanding, will not take over the enterprise in 1998. Explicitly predictive stories (in contrast to the covertly predictive stuff we normally write) are the pre‰mptive military strikes of journalism. If you nail a prediction, you wipe out the competition (see our letter to Gil Amelio, asking him to resign). If you miss, you lose much of your authority. We hope we got it right. Trends relevent to ASND: herring.com herring.com herring.com