Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: robbie who wrote (28741)	12/28/1997 4:45:00 PM
From: Gary Korn	Read Replies (2) \| Respond to of 61433

Robbie, Thanks for your response and your helpful data. Taking your information (you advised that CSCC earned $23.4MM in 4Q96) plus what ASND earned in 4Q96 -- $41.1MM -- we get combined 4Q96 earnings of $64.5MM. Now, if ASND/CSCC earns .23/share, that would be about $46MM. This is 28.7% less than 4Q96 (had ASND/CSCC been combined at that time). One year ago (from when 4Q earnings will be released), for the week ending 1/17/97, ASND closed at 75. A 28.7% reduction from 75 would give a stock price of about 53 1/2. Take a little more off of that 53 1/2 price because earnings growth has slowed (though revenue increases between 30-40% have been predicted for 1998), and you get down to...24???? It does seem that the pendulum has swung too far, doesn't it? Alternatively, exactly one year ago (12/27/97), ASND closed at 62 1/4. A 28.7% reduction from that is still 45 1/2. Once again, how much more do you take off for slowing earnings growth, past troubles with the MAX TNT, the CSCO threat, etc??? Another 21 points down to 24??? It seems too much. Gary Korn